Although one is a project that grew out of the other, they work very differently and their quotes are unmatched. Keys not to be wrong
Being wrong is human. And the chances are increased when you must choose between options that seem similar, but deep down they are very different.
Just as messing with a condiment in the kitchen can ruin a dish, get confused when buying a cryptocurrency you can bring more of a headache before the bad results.
In the eyes of those who do not know the subject, the digital currencies may all look the same, but clearly they are not.
It is enough to compare the nature of the “volatile” coins (like Bitcoin and Ethereum) with the “stable” (DAI or Tether, for example) to understand that their behaviors are different.
In the case of Bitcoin (BTC), the most popular, there is a clear situation: they exist others that take his name and cause confusion in some investors, as they have a very different nature. In particular, the reference is to Bitcoin Cash (BCH) y al Bitcoin Satoshi’s Vision (BSV).
They are called practically the same, which can lead to cumbersome confusion. Next, their differences and what they are used for, in general, each of them.
To err is human, but it can bring complications
Similar names can lead to unsuspecting users to buy BSV or BCH thinking they are acquiring BTC. And this mistake can cost them dearly.
At first, as an investment they were not as profitable. Since the beginning of the year:
“It is true that they are usually confused by those who have just dabbled in the crypto world and this I think is partly intentionally generated, since both forks use the original Bitcoin logo and even the name to promote projects, which causes confusion. But the real one is the BTC, born in January 2009 signed by Satoshi Nakamoto“, affirms to iProUP Emiliano Limia, Press Office of BuenBit.
Given the possibility of making mistakes due to these characteristics described by the spokesperson for Buenbit, Leo Elduayen, COO and cofounder of Koibanx, warns iProUP that “it is important that when choosing a currency in which to invest and use, who acquires it understand the technological project behind to better understand the possible scope “and remarks that a mistake can be catastrophic for the investor.
“For example, if you transfer BTC to a BCH or BSV address, you lose it and vice versa. The recipient does not receive for being unsupported addresses, and there is no way to reverse the transaction. Some exchanges have protection against this, but if it is done by P2P platforms (person to person) there is no way to solve it, “he warns.
For his part, Ignacio Giménez, specialist in cryptocurrencies from Lemon Cash, remarks that Risks include controversy, rumors, and false news. “There are too many found positions. From who are its creators, how they work, how useful they are or what are the improvements with respect to the original blockchain “, he assures.
The other “bitcoins” are forks of the original project
Therefore, he advises “get well informed. Although one of the benefits of decentralization is that one of the parties does not end up gaining full control of a cryptocurrency, the problem is that generally difficult to get everyone to agree on the best course of action to make progress. ”
Thus, in the face of the large number of new digital currencies that emerged in recent years, with similar names and logos that can be misleading, getting informed before trading is key to get the maximum return to each investment alternative and avoid headaches and loss of capital.
What audience uses them
Inside the universe of cryptocurrencies there are two very marked strategies:
- Those who bet in the long term, either as a store of value or because they trust the project
- Those who prefer trading and are very attentive to short-term buying and selling, to make quick differences
In this sense, the specialist of Buenbit analyzes that “so much BCH as BSV are generally used as assets to make trading, and its management in the industry It is not the reserve of value, it is more direct to function as a means of fast payment. Even if they do not have the same security or liquidity as Bitcoin“.
For his part, the expert from Koibanx adds that “the projects behind each crypto will be the ones to determine which ones are chosen for trading or safekeeping. In general, BCH and BSV come first, while the stablecoins they are the chosen ones par excellence for the second “.
“BTC is the most selected when we talk about speculation with the rise, what enables trading, but is still used as a store of valueAt the same time, it is also an investment if we take into account its behavior in the medium and long term, “he adds.
Copies or evolutions?
Bitcoin Cash (BCH) is an open source cryptocurrency that has its beginning in the bitcoin network split generated in August 2017.
In dialogue with iProUP, Emiliano Limia, expert of Buenbit, puts the origin in context: after the birth of BTC, “its evolution was full of debates and one of the most important discussions had to do with his scalability“.
Thus, while the original protocol allowed record transactions that fit into a 1MB block of information (and that could be mined approximately every 10 minutes), in parallel his detractors cheered greater capacity and his criteria pointed to this limitation did not follow the vision of Satoshi Nakamoto to make BTC a means of electronic “cash”.
“These discussions between developers ended with a improvement proposal for Bitcoin, in which it was proposed increase block size initially to 8 MB of information, that is, in which they would enter eight times more transactions“Limia points out.
And complete: “That dispute concluded in a Bitcoin network fork. The majority that was against this modification continued to support the original project, while the minority in favor of this ‘improvement’ he put his own BTC, which they called Bitcoin Cash“.
Giménez qualifies this new alternative as a fork, a term used to refer to a initial project clone (in this case, from BTC).
“Is he result of a new division: the original blockchain and its altered version run on different directions, taking a part of the public with them “, details the expert.
He adds that most of these types of projects are intended to include new functionalitiesinspired by key disagreements, such as transaction speed, commissions or block size.
Elduayen agrees with his colleagues and states that iProUP that Bitcoin Cash, with its current block size of 32 MB, it can process up to 60 transactions per second, which still does not provide enough power to act like a payment system global.
In addition, it remarks that its protocol is not preferred by developers to create apps on your blockchain as it undergoes frequent modifications.
Some of his Distinctive features of BTH compared to BTC are:
- Does not implement the transaction scheme adopted by Bitcoin (which erases secondary information to get more space)
- Supports both the BTC address format and its own (denominated CashAddress or CashAddr)
- The Simple Ledger Protocol (SLP) runs on its blockchain., which reduces costs to operate
The story doesn’t end there
In november 2018 appeared on scene Bitcoin Satoshi’s Vision (a spin-off de Bitcoin Cash).
Its existence is a consequence of the “crack” between two proposals to update BCH and that generated a war of hash (event that implies the division and competition of the mining power of a crypto in support of different consensuses on the protocol).
Its emergence as an alternative currency is due to a disagreement around upgrade options. “Fruit of this new discussion among those leading the Bitcoin Cash project, BSV nation, promoted mainly by self – proclaimed Satoshi Nakamoto, Craig Wright, “explains Limia.
Regarding this option, Elduayen points out that in February 2020 he launched “Genesis Upgrade“, which served to bring the Bitcoin protocol back as close as possible to the vision of the creator of the leading cryptocurrency.
“The update also unlocked the potential of the BTC blockchain for outrageous scalability, which means that your block size limit of 2GB will grow rapidly, and professional-grade security was developed never before seen in the history of digital currency, “adds the Koibanx expert.
Giménez indicates that both BCH as BSV “were raised by communities who considered that certain functionalities of the BTC’s original blockchain required an upgrade substantial”.
“Bitcoin SV is a fork of Bitcoin Cash, which in turn is a fork of BTC. This means that They are projects that were born from an initial blockchain and, for some reason, a alternate branch“, concludes Elduayen.
We want to give thanks to the author of this article for this remarkable material
For investors: what is the difference between Bitcoin and Bitcoin Cash and why being wrong can be fatal