08/08/2022
One main difference between Bitcoin and Bitcoin Cash is the size of the blocks on each chain. At a time when Bitcoin’s block size limit was 1 MB, Bitcoin Cash launched with a block size limit of 8 MB. Today, the block size limit for Bitcoin cash is 32MB, and Bitcoin’s limit remains much smaller.
In general, the bigger block size allows Bitcoin Cash to process transactions at a much faster rate than Bitcoin. Bitcoin Cash can process about 116 transactions per second, while Bitcoin can process about seven on average. In comparison, Visa processes 24,000 transactions per second.
Although B*H has a faster transaction speed, it’s not as widely accepted as BTC, and is not as liquid. Bitcoin Cash is also subject to its own debate; a hard fork from Bitcoin Cash, known as Bitcoin SV, is also in existence.
Bitcoin Cash Use Case
Like Bitcoin, Bitcoin Cash is a digital currency that can be used to complete transactions.
You can buy and sell goods and services, and use B*H as a medium of exchange.
Because of the speed at which B*H is processed, Bitcoin Cash could be used for everyday spending in a way that BTC, which is considered clunky by today’s standards, can’t.
While it might make sense to use BTC as a store of value or for large purchases (think cars or houses) that don’t need instant processing, Bitcoin isn’t practical for quick transactions like paying for your lunch. B*H fills that role and can be used for daily purchases.
It’s also used as a peer-to-peer system of sending money to others. You could send B*H to a friend, no matter where in the world they live, and the friend could use that B*H for transactions or convert it to their local currency.
Finally, for those interested in cryptocurrency investing, B*H can be one way to diversify, and potentially add growth to, a portfolio.