Understanding the difference between Bitcoin, Bitcoin Cash and Bitcoin SV
The evolution of bitcoin over the past few years has us watching in owe. Most people never thought this cryptocurrency would come this far in such a short period. But, as a trader, it is easy to get confused by the many terms and definitions in the industry.
Which should you invest in? What are the key differences between Bitcoin, Bitcoin Cash, and Bitcoin SV? This guide will give you all the answers to these questions and more. You will learn their history, value, and potential growth in the future.
This information will make it easier for you to make the right investment choice and allow you to have a clear focus on the features of each.
Bitcoin
To understand any of the other investment options, you must realize bitcoin clearly since it was the first cryptocurrency. It is well known because it has been on the market for a long time. It works like any other currency and, therefore, allows you to purchase goods and services and also make investments. The coin is protected from counterfeiting by blockchain technology, although it is not owned or issued by any person or group.
It is also limited, like other currencies, to ensure that its value does not diminish over time. Bitcoins are limited to 21 million. This is the only number of bitcoin that will ever exist. While the available number today is over 16 million, it will be a long time before they get to 21 million. This is because every four years, the number of bitcoins produced per block is reduced by half.
The more people get their hands on bitcoin, the lower the creation rate becomes because of the value increases. Bitcoin remains the most valuable cryptocurrency in the world. While there are many currencies in the world, few come as close to bitcoin to create a competition. You must understand that these three cryptocurrencies are not rivals. Bitcoin SV and bitcoin cash and different versions or spin-off of bitcoin.
Bitcoin cash
Bitcoin cash is like Bitcoin and is created through bitcoin cash mining. This cryptocurrency was established in 2016 and is thus, younger than bitcoin. Bitcoin was forked to create Bitcoin cash since developers felt the need to make specific changes to bitcoin. The developers were unable to come up with a list of the changes they needed and thus opted to fork it and create a new version with the modification but certain similarities to bitcoin. Don't use plagiarised sources.Get your custom essay just from $11/page
Here are some of the most notable differences between the two:
The first significant difference is that as a user, you pay lower transfer fees of only 0.02 per transaction with bitcoin cash. This allows you to save more money, primarily if you transact regularly. A single bitcoin transaction can cost about $1 per transaction. There was a time you would have paid as much as $25 for every transaction.
Another significant difference between the two is that your transactions are much faster when you use bitcoin cash. You will not have to wait for the 10 minutes bitcoin takes per transaction.
Lastly, because of the faster transaction times, you can transact more per second that you would with bitcoin. This also means that more people can use their cryptocurrency than it is possible with BTC.
You may be asking yourself, how is all this possible if the two use similar codes? Well, it is because bitcoin cash is designed to be bigger than a bitcoin block. This means it is cheaper, faster, and scalable than bitcoin. It is, therefore, more adapted to this day and age, where technology needs to move faster.
Speculations suggest that if BTC developers do not find a way to agree with the changes to be made to the cryptocurrency, it may lose the battle to bitcoin cash because of the ease of use and lower fees. Bitcoin cash has a huge potential to become the next sizeable transactional currency.
Bitcoin Cash Demerits
One of the biggest, yet obvious demerits of bitcoin cash is that it does not stir the confidence of investors. Of course, like you, most people want to use a cryptocurrency that has been in existence for a few years. The fact that it is newer than bitcoin makes investors cautious when using it.
There is also the fact that the mining costs for both bitcoins and bitcoin cash remain the same. The price of bitcoin cash is also 15% of the price of bitcoin. It makes it less profitable for you to mine bitcoin cash. With bitcoin cash, you earn 60% less profit than a person using similar equipment but mining bitcoin. Miners are, therefore, not motivated to mine bitcoin cash. One bitcoin is equal to 26.87 bitcoin cash.
Bitcoin SV
Also known as Bitcoin Satoshi vision, bitcoin SV is a hard fork of Bitcoin. It was created to align the vision Satoshi Nakamoto had when he created bitcoin. It is called true bitcoin, although this is yet to be seen as it is not close to unseating bitcoin. Bitcoin SV is exceptionally similar to bitcoin cash and bitcoin. They are all named after the underlying blockchain protocol and codes.
One year after the creation of bitcoin cash, the bitcoin developers faced even more disagreements and fights. These led to the split of the rival communities and, thus, the hard forking of bitcoin SV.
The developers of bitcoin SV claim that bitcoin cash has strayed so far from the objectives of bitcoin that it has become an alt-coin. This is why they sought to preserve the Satoshi vision.
Bitcoin Sv is more stable and allows for better usage for businesses that need the currency in bulk.
Conclusion
Because of the hash wars that are currently underway between the teams, the miners have had to pay serious consequences. By December 10th, 2019, Bitcoin SV miners had lost $2.49 million while bitcoin Cash miners had lost about $3.45 million. It is difficult to distinguish between bitcoin cash and bitcoin SV because they are spin-offs that have a much lower value than bitcoin. However, it is recommended that investors and miners remain watchful of the trends to avoid future losses.