While Bitcoin reigns supreme in the cryptocurrency space, it is not without some drawbacks, particularly its low transaction volume, which keeps it from maximizing the efficiency of payments.

That’s where Bitcoin Cash came into play, serving as a solution to the problem and providing a cheaper, faster means to process payments. Since its inception, Bitcoin Cash has risen to the 25th spot in the largest cryptocurrencies by market capitalization.

Bitcoin Cash Explained

Bitcoin Cash is a cryptocurrency introduced in 2017 through a hard fork from the Bitcoin blockchain. The digital currency was developed to solve transaction speed issues of Bitcoin, as some participants looked to see Bitcoin process more transactions.

The main difference between Bitcoin Cash and Bitcoin is the block size. A crypto’s block size impacts the number of transactions per second, smart contracts, performance, and price.

Bitcoin Cash’s block size tends to be larger when compared to the world’s biggest cryptocurrency, which maintains a block size of 1 megabyte (MB) and processes up to seven transactions per second.

The size of Bitcoin Cash’s block was originally 8 MB, but it later grew to 32 MB, allowing the digital currency to process hundreds of transactions per second, with each only costing less than a penny.

Block size and transaction speed aside, Bitcoin Cash is pretty similar to Bitcoin, as it is also an open-source, decentralized digital network.

In addition, the supply of Bitcoin Cash caps at 21 million coins, exactly like Bitcoin. Miners also authenticate and add new transactions to the blockchain with cryptography to solve complex math problems, earning Bitcoin Cash tokens when they are right.

Bitcoin Cash and Bitcoin

As mentioned above, Bitcoin Cash and Bitcoin have different block sizes. Bitcoin Cash’s bigger block size lets it process cheaper transactions at a much quicker rate than Bitcoin. A single Bitcoin transaction usually costs $59.

However, the larger block size may mean Bitcoin Cash is sacrificing security in exchange for faster transactions because fewer miners are processing and verifying the transactions.

The 32 MB block size and faster transaction confirmation time could put Bitcoin Cash’s security at risk of being compromised in relation to the Bitcoin network.

Bitcoin Cash is okay if you’re only making small purchases, but if you’re buying items like a house or a car, it would be better to use slower yet more secure crypto such as Bitcoin.

Bitcoin Cash and Bitcoin also differ in market capitalization. The overall market cap of Bitcoin Cash currently stands at around $6 billion, while the world’s biggest crypto now has a market size of over $700 billion.

Investing in Bitcoin Cash

Interested investors can buy Bitcoin Cash on major cryptocurrency exchanges like Kraken and Coinbase or platforms such as PayPal. In exchanges, you will be required to open an account and fund that account to hold Bitcoin Cash and other cryptocurrencies.

In deciding what to do with your Bitcoin Cash, there are several options you can consider. For example, you can keep them as investments and store them in a crypto wallet, convert them into other cryptos, or use them for transactions.

However, if you’re looking to invest long term, the original Bitcoin would be ideal.

If you measure Bitcoin Cash in Bitcoin, you may observe that the price of Bitcoin Cash has dropped gradually since its launch. Therefore, it would be better to opt for Bitcoin as it should work as a safer investment than Bitcoin Cash.