The largest, most prized cryptocurrency in the world today is Bitcoin. This refers to digital currency specific to the Bitcoinblockchain. Many investors are now interested in investing in Bitcoin Cash – the new coin. It is purchased at a small cost compared to Bitcoin. Agora Financial recommends that new investors should stick with Bitcoin instead of Bitcoin Cash.
Bitcoin Cash was created to address processing times and cost of transactions associated with Bitcoin. Increased demand has caused an increased cost for processing Bitcoin transactions. A typical Bitcoin transaction fee is six dollars. Bitcoin users have to pay their own transactions fees which is different than in regular banking. Some customers can even end up paying higher fees. This is particularly true if they want their transactions processed quickly. Transactions fees and the processing time for transactions has increased with the growing popularity of bitcoin.
A hard fork was created in the Bitcoin chain on the 1st of August, 2017. It was created by a group of miners, users, investors and developers. Up to the hard fork, Bitcoin and Bitcoin Cash transactions are the same but after the fork, they are completely separate. The block size limit is increased up to 8MB with Bitcoin Cash. Transaction fees are much smaller than Bitcoin’s.
Bitcoin Cash has its own set of issues though. It has a CEO and is controlled largely by a small group of miners. Bitcoin, on the other hand, is a decentralized currency that is not controlled by any entity or person. Half the hash power is in the hands of a few mining pools. If these parties come together they could make an attack on the coins. The hash power of Bitcoin is much more centralized and it is less able to be overpowered by groups of miners. It is also not a company and is not controlled by any group of people. When it is forked or upgraded it is done only after the community is polled and more
Agora Financial’s bottom line on the difference between Bitcoin and Bitcoin Cash is that beginners to cryptocurrency are better off for the time, sticking with the well establishedBitcoin. Agora Financial specializes in publications that educate everyday investors on where to put their money. The company is a trusted source for investing education and has been in business since 1979. The company’s experts are all active traders who consistently make money on their investments.