Bitcoin Cash is the updated version of Bitcoin. The main difference between Bitcoin and Bitcoin cash is the larger sizes if blocks used in Bitcoin Cash.
How does the Bitcoins token work?
Proof-of-Work algorithm is used in Bitcoin mining process which solves a block in every 10 minutes and new Bitcoins are created. The Bitcoin’s capacity can be increased by increasing the size of the blocks which will allow more transactions to pass through it.
But Bitcoin chose not to increase the blockchain size because Bitcoin was originally created to a lightweight and decentralized currency by Satoshi Nakamoto. If the transactional capacity is increased, Bitcoins will become heavyweight and the miner will have to store the entire blockchain on their computers which will make the network centralized.
The very motive of Bitcoin is to create a peer-to-peer online decentralized platform. Bitcoin cash increased the transactional capacity but also made it centralized to some extent, which is why Bitcoin users did not accept this feature and Bitcoin Cash was created.
How do Bitcoin Cash works?
Bitcoin Cash was created which has a larger block size with a higher transactional capacity. It forked out from Bitcoin and a new cryptocurrency was formed.
Bitcoin cash addresses the problem of higher transaction time with its fast processing of transactions. It is slowly becoming a fast and friendly option for users to use cryptocurrency in day-to-day transactions making it widely accepted.
Struggles for Bitcoin Cash
The brand image of Bitcoin is the major benefit for Bitcoin Cash. Its strong association with Bitcoin and its powerful branding has won many admirers and buyers for Bitcoin Cash.
On the other hand, many enthusiasts see Bitcoin Cash as a threat to Bitcoin and thus condemn it. The investors in the crypto market, do not recognise Bitcoin Cash as a replacement for Bitcoin and refuse to invest in it, which creates struggles for Bitcoin Cash.
Future of Bitcoin Cash
Bitcoin Cash will continue to rise and will stay in the top ten cryptocurrencies. It may or may not be able to overthrow Bitcoin completely but it will definitely be recognised for being a lightweight and fast cryptocurrency making efficient transactions.