Bitcoin (BTC) vs. Bitcoin Cash (BCH)

Despite sharing almost the same name, Bitcoin (BTC) and Bitcoin Cash (BCH) are two separate cryptocurrencies and should be recognized as such. They are built on the same blockchain and, technically, were once a single entity, but since 2017 there has been BTC and BCH. Each coin has its own value and block size, and both come with investment risks.

Understanding what makes them different is vital when investing in either. In this guide, we’ll explore what makes Bitcoin different from BCH, why the latter exists in the first place, the fluctuating value of each, and much more.

History

There wouldn’t be Bitcoin Cash (BCH) if it weren’t for Bitcoin (BTC) – but you could say this about all cryptocurrencies. Being the world’s first cryptocurrency, Bitcoin (BTC) obviously came first. Understanding BTC’s history is essential to understanding BCH and how it works.

Bitcoin (BTC)

Bitcoin was founded by the somewhat mysterious figure Satoshi Nakamoto in 2009, following the release of the official white paper in 2008. Nakamoto, a pseudonym, has never been identified, and experts still don’t know whether this developer is an individual or a group.

What is clear, however, is that Bitcoin (BTC) was the first-ever cryptocurrency and, therefore, the most influential. Throughout the 2010s, it changed how we shop online, giving the world a glimpse into the capacity of digital currency.

Although Bitcoin is still the most prominent cryptocurrency, over 12,000 coin types have been released in its wake. Many of these coins have been issued to solve the issues BTC users face, and Bitcoin Cash is one of them.

Bitcoin Cash (BCH)

As cryptocurrency advanced, the limitations of Bitcoin’s protocol began to show. Coins were being issued with bigger transaction capacities, which made Bitcoin less appealing.

In 2017, in an attempt to move Bitcoin forward, several developers proposed editing Bitcoin’s code to create a larger block capacity. This would, in turn, increase the number of transactions that could occur.

A disagreement ensued, which led to a hard fork taking place – a split in the blockchain. While Bitcoin remained as it was, a new cryptocurrency was born: Bitcoin Cash (BCH). This was only the first in a series of hard forks that spawned other altcoins such as Bitcoin SV.

Since Bitcoin Cash launched in 2017, it has remained active but as yet has achieved nowhere near Bitcoin’s success.

What Are They, And Why Were They Created?

To put it simply: Bitcoin was invented so that people could make online transactions easier. On the other hand, Bitcoin Cash was created to resolve issues investors in Bitcoin were facing.

Bitcoin (BTC)

Bitcoin and the Bitcoin blockchain were invented when no other online currency of its kind existed. E-commerce was taking off, and the industry wanted to create seamless transactions. Bitcoin fulfilled this need and, in doing so, sparked the crypto revolution.

Coinciding with the advent of commerce was the financial crisis of the late 00s. Investors had lost their faith in banks and were looking for decentralized investment alternatives. Again, Bitcoin was able to fulfill this need.

Bitcoin Cash (BCH)

Bitcoin Cash (BCH) is, much like regular Bitcoin, simply a cryptocurrency. It was conceived to resolve the limited trading available on the regular Bitcoin network.

Interestingly, developers never meant Bitcoin Cash to be its own coin. The developers behind it initially proposed to right the wrongs of Bitcoin’s block size, not create a whole new cryptocurrency altogether.

The split only came about because many people opposed the change in Bitcoin’s code. The naysayers argued that a bigger block size encouraged hackers to infiltrate the system. More people supported the idea of Bitcoin remaining the same than changing, so a hard fork was triggered instead, leading to the creation of BCH.

Price History

Bitcoin remains the most dominant cryptocurrency on the market and has a higher value to the dollar than Bitcoin Cash. Plus, Bitcoin has had a more varied price history – although BCH has also experienced its ups and downs.

Bitcoin (BTC)

At the time of writing, a Bitcoin (BTC) coin is worth $20,601. Over the last few years, Bitcoin has been gradually decreasing in value, with a few improvements now and then. For example, in June of this year, Bitcoin dropped below $18,000 – continuing its pattern of ups and downs.

Still, the Bitcoin of today doesn’t come close to its peak. For example, near the end of 2021, Bitcoin was worth over $65,000. This demonstrates the versatility and volatility of crypto investment, given how much it has dropped in just one year.

Bitcoin Cash (BCH)

BCH is currently worth $114.23. For a more up-to-date reflection of the coin’s value, look at the crypto statistics provided by CoinMarketCap.

The all-time high of BCH was $3,785, which occurred in December 2017. In comparison, the all-time low of the coin was $76.93, which occurred in December 2018.

Market Cap

The market cap of a cryptocurrency is the best indicator of how much a crypto company is worth as a whole. In other words, it shows you how much the entire circulating supply of a cryptocurrency is worth. Like the price of a coin, the market cap can fluctuate depending on how many Bitcoin transactions are made.

Bitcoin (BTC)

Currently, the market capitalization of the original Bitcoin is $394,690,702,276.

Bitcoin Cash (BCH)

At this time of writing, the market cap of BCH is $2,186,366,638.

Daily Transactions

Being the leading cryptocurrency, Bitcoin obviously sees more transactions in a day than Bitcoin Cash. The daily transaction rate of the two cryptos are as follows:

Bitcoin (BTC)

The daily transaction level of Bitcoin (BTC) was 306,069 on the 26th of October, 2022.

Bitcoin Cash (BCH)

The daily transaction level of BCH was 20,628 on the 26th of October, 2022.

Block Size

Block size is where BTC differs from BCH the most. Bitcoin Cash supporters felt that the BTC block size was too small. On the other hand, Bitcoin supporters feel that the block space of BCH is too big and, therefore, unsafe. This disagreement over the Bitcoin protocol led to the founding of Bitcoin Cash.

Bitcoin (BTC)

The Bitcoin block size is 1MB, meaning it can support 2000 transactions.

Bitcoin Cash (BCH)

Bitcoin Cash supports a bigger block size of 32 MB, ensuring a faster transaction speed and space.

Similarities

There are many similarities between Bitcoin and Bitcoin Cash. The latter essentially started out as Bitcoin (BTC) and retained many of BTC’s characteristics following the hard fork. This includes:

Total supply – Both Bitcoin (BTC) and Bitcoin Cash (BCH) have capped their total supply at 21 million coins.
Bitcoin blockchain – Bitcoin (BTC) and Bitcoin Cash (BCH) are built on the Bitcoin Blockchain and use the same blockchain technology.
Both have experienced a hard fork situation – It was a hard fork on the original Bitcoin blockchain that established Bitcoin Cash. Additional hard fork situations lead to the establishment of Bitcoin SV and Gold.

Differences

Given that Bitcoin Cash was introduced to resolve the issues of regular Bitcoin, the differences between these two coins are obvious and include the following:

Cash is faster – Given its bigger capacity, Bitcoin Cash can provide a faster transaction speed.
Cash offers bigger blocks – Bitcoin Cash features a much bigger block space, which means it can process transactions in larger quantities.
Cash offers lower transaction fees – Transaction fees tend to be lower when trading on the BCH blockchain. BCH requires less mining power, so it doesn’t have to charge high fees.

Risks

Although both cryptocurrencies use the same blockchain technology, they come with unique risks.

Bitcoin (BTC)

Bitcoin has decreased in value exponentially since the end of 2021.
Although the Bitcoin blockchain has never been hacked, the risk is always there.

Bitcoin Cash (BCH)

Bitcoin Cash has experienced many additional hard forks, resulting in independent cryptocurrencies such as Bitcoin Gold and Bitcoin SV. These consequent forks in BCH indicate a degree of instability with regard to this coin.
Bitcoin Cash has bigger blocks, which puts it at a higher risk of being hacked.
Bitcoin Cash doesn’t show much promise for the future.

Where To Buy

The Bitcoin offshoots, from Bitcoin SV to Bitcoin Cash, can be found on various crypto exchange platforms, including the following:

Bitcoin

Bitcoin Cash

Coinbase
Binance
Crypto.com
Kraken
Uniswap

Exchanging Bitcoin For Bitcoin Cash

You can exchange Bitcoin for Bitcoin Cash coins on many of the sites listed above. For best results, we’d recommend you buy Bitcoin Cash on the likes of Kraken and trade it for Bitcoin on any leading crypto exchange site. This does not constitute financial advice but is potentially a wise investment decision.