Bitcoin vs Bitcoin Cash: Which One is Better for Shopping, Trading, and Investing?
Bitcoin (BTC) is the original cryptocurrency. Bitcoin Cash (BCH) is a fork (or clone) of Bitcoin with one major difference: the block size is 8MB rather than 1MB. That is the major reason why BCH can do around 60 transactions per second (TPS) to Bitcoin’s 7.
As of this writing, both of them are top 10 coins in terms of market capitalization. However, the two are very different in valuation – BTC is about 30x more expensive – and in terms of practical use.
Below, we explain some of the specific differences between the two by exploring the advantages of each to shop, invest, and trade.
Shopping – Bitcoin Cash Wins
Bitcoin is the “gold” of the crypto space. It holds value well and is universally accepted by other crypto projects. Not to mention it was the first coin arriving the crypospace since 2009.
Unfortunately, Bitcoin is very slow. Transactions usually require two confirmations, each of which can easily take 30 minutes. This makes Bitcoin a very poor choice for shopping unless you don’t mind waiting for an hour each time when you want to buy something with it.
Bitcoin Cash does a lot better here. Not only is it a lot faster (transactions take 10-15 minutes); at peak use times, BCH’s blockchain has processed more transactions per second than PayPal.
So the winner here is clear – Bitcoin Cash. It is far superior for shopping mainly due to faster TPS.
Investing – Bitcoin Wins
Next up we have investment. Between Bitcoin and Bitcoin Cash, which is more likely to retain (or increase) in value as time goes on?
Well, so far, the two cryptocurrencies’ prices have actually been in step. During 2017’s crypto boom, both skyrocketed in price. During 2018’s bear run, both dropped value more or less in sync.
The main difference is that Bitcoin has retained its value a little better. This makes sense; its market cap is roughly 3,000% that of Bitcoin Cash’s, and it has a much bigger user base.
By and large, both Bitcoin and Bitcoin Cash are good options for investing money – but Bitcoin is, of course, a little better for its popularity, market cap, and institutional interest. It’s a more solid crypto coin to invest in the long run.
Trading – Tie
There’s virtually no difference between trading Bitcoin and Bitcoin Cash in an exchange setting. However, there are two things to bear in mind.
First, Bitcoin tends to have more coin pairs than Bitcoin Cash. This means you can readily trade it for virtually any other coin in the world, which isn’t always the case for Bitcoin Cash.
Another important difference is that Bitcoin tends to have more volume and liquidity. This means it’s typically easier to buy and sell than any other token including Bitcoin Cash. However, this is unlikely to affect most traders since Bitcoin Cash is also very liquid.
The result here is a firm tie with neither coin coming out on top of the other.
Where can you buy BTC and BCH?
Now that you know when to use BTC and BCH, start building your cryptocurrency portfolio with CoinCola! We provide both peer-to-peer OTC and crypto-to-crpyto exchange services on our all in one platform. With our services, you can trade any fiat currency to a range of major cryptocurrencies quickly and easily.