Time has proven that bitcoins are among the most credible inventions of the millennium. However, a lot of criticism exists regarding the scalability issues of this digital currency. The scalability issues, according to some people, is what might hinder the growth of digital currencies as we venture into an era where there is rampant and exponential growth of peer-to-peer payments. It is for this reason that the need to address this matter resulted in the creation of bitcoin cash. Worth $233 during its launch in August 2017, bitcoin cash was trading at $2,250 on the first day of January, 2018. What is bitcoin cash, and how is it different from bitcoins?
What is Bitcoin Cash?
Bitcoin cash is fully decentralized peer-to-peer system of cash transfer that was created on the 1st of August, 2017. Bitcoin cash was created from bitcoins through a process called hard forking. Bitcoin cash is technically an improvement from its older counterpart, bitcoins. Bitcoin cash increases the size of the blocks, and by so doing, enables the processing of more transactions per second.
Bitcoin cash is a bit different from bitcoins since one is the continuation of the other. Bitcoin cash is the hard fork of the blockchain ledger of bitcoins. It has upgraded consensus rules that allow for growth and scalability. Some people believe that with these improvements, bitcoin cash will overtake bitcoins in the future. The recent growth of bitcoin cash within 5 months supports this claim. However, some analysts believe that bitcoins won’t be giving up their number one spot soon because as of January 2018, bitcoins had a market capping of 56% of all the cryptocurrencies.
Is Bitcoin Cash Cheaper to Transact With?
Transacting in bitcoin cash is fairly cheaper as compared to transacting with bitcoins. With both versions, transaction fees are calculated in satoshis per byte. A satoshi refers to the tiniest unit of a bitcoin that exists in 8 decimal places. This means that transaction charges are not based in dollars or Euros, but in satoshis. As of January 2018, bitcoin charges 900 satoshis per byte for a transaction to be included into a block. This means that a single bitcoin transaction costs more than $30. In comparison, the average fee charged in bitcoin cash is 20 satoshis per byte. Bitcoin cash also allows its users to manually set their fees to as low as 5 satoshis per byte since there is enough room in the block to accommodate very many transactions.