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Confused between Bitcoin and Bitcoin Cash?
Here’s all you need to know!
Bitcoin is well known and fourth largest cryptocurrency in terms of the market capitalization that emerged almost nine years ago and is currently world’s most expensive and most popular cryptocurrency.
But it has one big problem!
It’s quite slow, especially in comparison to banks that deal with credit card transactions.
Visa processes 150 million transactions per day, averaging roughly 1,700 transactions per second. The company's capability actually far surpasses that, at 24,000 transactions per second.
As the network of bitcoin users grows, waiting times will become longer since there are more transactions to process without a change in the underlying technology that processes them.
This central problem of scaling and increasing the speed of the transaction verification process led to the birth of Bitcoin cash.
In August 2017, some miners and developers initiated what is known as a hard fork, effectively creating a new currency: bitcoin cash. Bitcoin cash has implemented an increased block size of 8mb to accelerate the verification process, with an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it. This is also why you should never send Bitcoin to your Bitcoin Cash wallet, they are 2 different blockchains, and the money WILL BE LOST.
If each transaction is a passenger, then bitcoin’s 1MB block size is more like a car, while BCH’s 8MB block size is more like a bus. Larger blocks can hold more transactions, which helps process them faster. Currently BCH can perform 27 transactions a second.