Bitcoin vs. Bitcoin Cash
What are the main differences between BTC and its BCH hard fork?
BCH was created due to some concerns within the BTC community regarding the Bitcoin scalability issue.
Even today, the BTC network can only handle 7 transactions per second (TPS), while the BCH network can handle significantly more. This fact was identified as one of the main points during the launch. At that time, the BTC block size was limited to 1 MB, only at the start the BCH block size was 8 MB. Since then, it has increased to 32MB (read more: https://nsbroker.com/desktop-platform).
Bigger BCH block sizes mean more processing power is required to mine them, which in turn means more cost. On the other hand, this means more opportunities for miners to receive transaction fees. However, perhaps the most significant difference between blockchains is the huge price gap.
At the time of writing (January 14, 2021), BTC is worth around $ 37,000 and BCH is around $ 500. Therefore, in order to attract miners to the network, the complexity of the BCH network must be lower than that of BTC. But how does blockchain work? Everything works with Emergency Difficulty Adjustment (EDA). This algorithm, built into the BCH blockchain, automatically takes effect when the number of miners changes abruptly.
Use and acceptance
Another reason for the division within the BTC community was that it was treated more like a store of value than a real currency. Indeed, even today this is understandable. Many media outlets still insist that BTC is “digital gold” with a limited supply. If you are hoping that its price will rise in the future, why would you use it to buy something else? Due to low tariffs and short processing times, BCH is expected to overtake BTC as the real currency - in theory, anyway. But does everything turn out as planned?
Is Bitcoin Cash successful?
As we said, BCH was touted as Bitcoin Plus at the time of its launch. "Bitcoin ... but better!" So, did you manage to achieve the resounding success that its creators hoped for? Well, not quite. Its developers had to face several challenges that ultimately affected its price and the success of the cryptocurrency throughout its short life.