What’s The Difference?
We’re all familiar with Bitcoin. It’s the most valuable cryptocurrency in the world. It’s in the news nearly every day as it continues to revolutionize global financial markets.
But in the midst of all the media attention that Bitcoin receives, you might not have noticed that Bitcoin Cash is attracting its own share of press as it continues to climb in value and make a name for itself outright.
This might lead you to ask: Just what is the difference between Bitcoin and Bitcoin Cash? What is Bitcoin Cash exactly? Is it the same as Bitcoin? Is it related? What’s the deal?
Well, the short answer is: these cryptocurrencies are different despite the similarities in name.
What Is Bitcoin?
Bitcoin is the world’s very first cryptocurrency. It was launched in 2009 as a response to the global financial meltdown of 2008. The idea was to create a form of currency that was free from inflation and market manipulation. Its price has fluctuated over the years, but since its inception it has increased its value over 10,000%.
Originally intended as a peer-to-peer electronic cash system that would be used to make payments, Bitcoin’s market value exploded faster than anyone could have anticipated. Ultimately it was decided that the token’s exponential growth made it impractical to use when it comes to day-to-day payments.
Because of that, Bitcoin’s original intention has been re-evaluated. Bitcoin is now primarily bought and held as a store of value, similar to gold for example.
What Is Bitcoin Cash?
In 2017, a group of Bitcoin users decided that they wanted to improve Bitcoin’s ability to process day-to-day transactions (like buying a coffee for example). Their aim was to make it easier to use the cryptocurrency for its original intention as a peer-to-peer electronic cash system. And so BitcoinCash was born.
BitcoinCash is what’s called a “fork” from the original blockchain of Bitcoin. Put simply: if a group of developers want to change an aspect of a particular cryptocurrency, they can split (fork) the blockchain that it lives on. Forking takes the main code from the existing cryptocurrency, (Bitcoin in this case), and then adds to it or alters it slightly so that it becomes its own separate entity.
The goal in forking BitcoinCash from Bitcoin was to optimize the cryptocurrency for actual practical payments.
Ironically, even though BitcoinCash was developed to serve primarily as an electronic cash payments system, it has experienced much of the same growth as a “store of value” that Bitcoin has enjoyed.
Which is More Valuable: Bitcoin or Bitcoin Cash?
Bitcoin’s explosive growth is unparalled. Launched in 2009, it has climbed from $0 to over $60,000 during its lifespan. Though the ride hasn’t always been a smooth one, very few investments can boast that level of growth.
Bitcoin Cash has only been available since 2017. Even so, it has experienced a meteoric rise very similar to Bitcoin. It’s now considered a significant store-of-value in its own right.
Short answer: both have proven to be very valuable assets in their own right. Both have experienced moments of fluctation but, in the final analysis, both cryptos have absolutely massive growth potential.
In either case, it’s always important to consider your investment goals, the time-span of your investment, and your tolerance to risk.
How to Add Bitcoin or Bitcoin Cash to your IRA or 401k
- Choose a reputable custodian : We can’t stress this enough. Make sure you find a company with experience that you can trust and rely on. BitTrust IRA with custodial partner Equity Trust are trusted with over $28 billion of assets in custody.
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- Make sure your crypto is SAFE: Security is a top priority. BitTrust IRA offers 100% offline cold storage with military-grade encryption and private keys secured in decommissioned nuclear bunkers.