So, you’ve decided that now’s the time to invest in cryptocurrency! You’re likely worried about your currency’s prospects for inflation and are looking for a great alternative.
You’ve got your eyes on Bitcoin and Bitcoin Cash. The former remains the most popular cryptocurrency. The latter has become one of the most popular alternatives to Bitcoin!
So which cryptocurrency should you focus on? Here’s what you should know about Bitcoin vs. Bitcoin cash.
What Is Bitcoin?
Bitcoin was the first cryptocurrency created just over a decade ago. It was made as an alternative to failing fiat currencies.
Bitcoin is one of the few cryptocurrencies that have a limited supply.As of the end of 2021, there are just under 19 million Bitcoins.
The limited supply of Bitcoin is what helps it preserve its value. This is why the Bitcoin price has gone up to $60K and remains in the five figures.
Most investors see Bitcoin as a digital asset that they can sell for fiat currency. They wish for the price to go up so they can profit off owning Bitcoin.
However, many investors are now seeing Bitcoin as an alternative to fiat currency. Entrepreneurs such as Jack Dorsey even see Bitcoin as replacing the U.S. Dollar as the world’s reserve currency.
The criticism of Bitcoin is that it has high transaction fees.In some cases, it can take upwards of an hour.
While Bitcoin adoption continues to rise, the high price makes it difficult for many newcomers to jump in.
The Bitcoin Cash Guide
Bitcoin Cash has been popularized by crypto investor Roger Ver who sees it as a better version of Bitcoin.
Like the former, there can only ever be a maximum of 21 million Bitcoin Cash tokens created. While it’s currently not the most popular cryptocurrency, it’s one of the most affordable options.
It boasts faster transaction speeds when compared to Bitcoin. As such, it has a lot of appeal for anyone who wishes to transact using cryptocurrency.
However, its low price doesn’t make it ideal as a digital asset to sell for fiat currency. Many “Bitcoin Maximalists” dismiss any cryptocurrency other than Bitcoin.
An advantage of Bitcoin Cash is that you can convert it to Bitcoin. As such, if one buys Bitcoin Cash and then no longer trusts it, they can covert it to the original cryptocurrency.
Bitcoin vs. Bitcoin Cash: Which One Do You Choose?
Now that you know the pros and cons of Bitcoin vs. Bitcoin Cash, you can decide which is better for your needs.
Bitcoin remains the most popular option for investing, using it as a currency, and preserving wealth. However, its high transaction fees, slow speeds, and the cost is a deterrent for many.
Bitcoin Cash solves many of the problems that Bitcoin has. Nevertheless, it hasn’t performed as well as other cryptocurrencies. It’s also not ideal as an asset for investment.
You can find more information on investing in cryptocurrencies on our website!