Bitcoin has been the market leader by various metrics since its inception in 2009. Today, it still remains the largest cryptocurrency by market capitalization, with over $1 trillion. Additionally, Bitcoin price has exceeded $60,000 recently, creating further interest in digital assets. Today, the Bitcoin network has become simply too popular for any other to just overtake it, and it is available on basically every cryptocurrency exchange.
Bitcoin Cash (BCH) came into existence much later and today ranks only in 11th place with a market cap of just over $10 billion. It has not proven to be as great of a success as the Bitcoin Cash community hoped it would. The BCH blockchain promised to increase transaction volume and reduce transaction fees.
Let`s take a closer look at the history, advantages, and disadvantages of the original Bitcoin blockchain and the split – Bitcoin Cash.
What is Bitcoin?
Bitcoin is the first Blockchain or distributed ledger created
As mentioned, Bitcoin is the first Blockchain or distributed ledger created. It has ever since been the largest digital currency with a price of over $60,000 and capitalization of over $1 trillion, with many analysts predicting BTS`s market cap to exceed that of gold in the upcoming years as financial institutions are slowly but surely starting to invest some of their holdings.
Simply said, Bitcoin is a currency that runs on a blockchain network and is a great alternative asset class. Many compare Bitcoin to digital gold, and there are many who predict that Bitcoins market cap will eventually exceed the one of Gold.
Features of Bitcoin
- Proof-of-work algorithm
- Store of Value
- Most popular cryptocurrency
- Stability of price
Does Bitcoin Offer Smart Contracts?
No, Bitcoin does not offer smart contract functionality as BTC developers want to keep the blockchain as simple and stable as possible. Developers of the Bitcoin community believed that the blockchain would suffer a decrease in speed for transactions and contest the network due to the current block size limit.
What is Bitcoin Cash?
Bitcoin Cash, or BCH for short, is an offshoot of Bitcoin. Digital currency offers a reduction in trading fees as well as trading times by offering slightly upgraded blockchain technology. Bitcoin Cash network has created much interest around the community, driving BCH prices higher over time.
Increased Bitcoin Cash block size allows for faster transactions and a decrease in trading fees while initially allowing the use of the same Bitcoin miner in securing the network. Ultimately, the BCH coin is a great alternative to Bitcoin, but it will likely never overtake the market size and popularity of Bitcoin.
During the time of launch, Bitcoin traded at a price of $2,700. BCH was given at an equal one-to-one ratio for any BTC holder with no restrictions on what to do with it once received. This caused massive price volatility at first, many rushed to simply sell the newly acquired BCH and purchase more BTC with the proceeds.
The price increase of BCH has let investors down
After some time, BCH’s price did stabilize around $250 and has ever since grown to a price of over $550. For most of 2019 and 2020, BCH`s price traded around the range of $200-$300, causing a huge letdown for those who wanted to profit from the cryptocurrency’s price increase.
The cause for stagnating prices is mainly due to high inflation for the coin. The demand in the market simply cannot outmatch the ever-increasing supply of the coin. This trend is likely to continue in the future. Therefore, if your goal is to capitalize on a pure price increase, BCH is not the right option.
What is Bitcoin Cash used for?
Bitcoin Cash, due to its nature as a blockchain with increased block size and transaction speeds, is mainly used to transfer value between exchanges and wallets. The price increase for a single BCH is not worth the investment if you are seeking a return on capital. There are many altcoins that have performed and likely will perform better than Bitcoin Cash.
Features of Bitcoin Cash
- Proof-of-work algorithm
- Larger block size
- Smaller transaction fees
- Faster speed
- Bitcoin Cash node is easier to setup
- Allows for smart contract writing
Does Bitcoin Cash Offer Smart Contracts?
Yes, Bitcoin Cash launched the capability of smart contract development in 2019 by using Cashscript, which is a specifically designed language that allows writing Bitcoin Cash contracts.
History of Bitcoin vs Bitcoin Cash
There have been attempts to stop, ban and disrupt the network over the years
As mentioned, the Bitcoin network began to operate in 2009. An anonymous person invented it under the name of Satoshi Nakamoto. There are debates about who the mysterious developer who created the original Bitcoin blockchain actually is.
Many developments have occurred during the more than 10 years of BTC`s existence. There have been attempts to stop, ban and disrupt the network over the years. However, as we can see today – Bitcoin still stands as the market leader with ever-increasing capitalization.
First use case – Black markets?
During the times when BTC had recognition only among hard-core information system specialists and enthusiasts of cryptography, a new group of people joined the ecosystem. It turned out that the semi-anonymous transactions of blockchain networks were the ideal payment option for black markets across the darknet, such as Silk Road.
This caused Bitcoin to move above the $10 mark in 2011, sparking even more popularity for the technology. People were not starting to buy Bitcoin as a way to profit yet, and trading was only just becoming popular. Several new exchanges were created to facilitate the demand for the ever-growing phenomenon.
The Segregated Witness issue
Much controversy was seen during 2017 as a new upgrade to the blockchain network called Segregated Witness was approved. Short for SegWit, this feature proposed a so-called “Soft fork” of the network that would allow bypassing several protocol restrictions.
This was done in order to deal with ever-increasing transaction volumes that congested the network. The solution using SegWit afforded was expected to allow for increased block size limits and increased speed for transactions.
After the community approved SegWit of developers and miners across the world, Bitcoin saw a huge increase in price. From just under $1,000 per coin in 2017, BTC`s price increased to over $13,000.
However, this new upgrade then created outrage for part of the developer and miner community who wanted to see the blockchain block sizes increased even further to allow for better speed and volumes.
Therefore, this conflict eventually resulted in two new blockchains – Bitcoin and Bitcoin Cash. The single BTC blockchain was essentially split into two, with the faction of Bitcoin developers and miners that wanted further progress now supporting Bitcoin Cash.
Hard Fork of Bitcoin Created Bitcoin Cash (BCH)
Bitcoin Cash came into existence from a split of the Bitcoin blockchain
Bitcoin Cash came into existence as a result of a split of the Bitcoin blockchain, in a process called a hard fork. The reason for the split was simple – there was a divide about the future Bitcoin’s scalability would look like as it faced a scaling issue due to increased interest around the world.
Bitcoin Cash supporters saw issues in the way Bitcoin mining was done and wanted maximum block size increased to allow for better speed, an increase in revenue for mining pools, and a reduction in the hash power and mining difficulty needed to sustain the network.
2017 – Bitcoin Cash launched with promises to solve the scalability issue
Therefore, in 2017 Bitcoin cash was created as a hard fork of the Bitcoin blockchain. The coin was distributed to anyone who held Bitcoin on their crypto exchange or personal wallet without any additional cost. This created a lot of interest for the newly formed digital coin with BCH supporters such as Roger Ver creating Bitcoin Cash price prediction that would imply BCH eventually taking over BTC.
Bitcoin SV – just another fork?
Further down the timeline, a Bitcoin Cash fork was made, creating Bitcoin Cash ABC and Bitcoin SV, with SV standing for Satoshi Vision. Satoshi Vision refers to the original concept developed by Satoshi Nakamoto on how the network should operate and perform.
SV was proposed by an Australian computer scientist Craig Wright, who has claimed to be Satoshi Nakamoto. Whether that is true is hard to prove. However, it did create another Bitcoin fork offering anyone with a Bitcoin Cash wallet some more free coins, just like during BTC`s first split.
2020 – The year institutional investors joined
As Bitcoin`s price saw exponential gains over the previous years, a new group of supporters joined. This time it was big – it was the Institutional investor with billions of assets. They were mostly interested in Bitcoin as it was the largest and offered to trade futures on conventional financial markets and exchanges.
Cryptocurrency markets overall saw bad performance during 2020 as the market declined after the exponential moves seen in the previous bull cycle. Therefore, we might see the next market cycle push higher once again – this time with even more money from institutional investors.
That`s it for history – what are the differences?
Overall, the main difference between Bitcoin and Bitcoin Cash is whether you want a store of value or fast transactions with low fees. BTC continues to be the market leader and is the best option for those who seek a return on their investment. On the other hand, BCH`s only real purpose is to transact fast with low fees as it has not had a substantial price increase over the past years when compared to many other altcoins.
As Bitcoin cash was derived from the same blockchain that Bitcoin uses, we could say that BCH is simply an upgraded alternative to Bitcoin. Many have called BCH a “beta-test” for Bitcoin and speculate that some of the features that Bitcoin Cash currently uses could eventually be implemented for Bitcoin.
Bitcoin cash advantages over Bitcoin
BCH allows for transactions to be processed faster when compared to Bitcoin transaction speed and a reduction in trading fees. It has developed the capability of smart contract development and overall is a great alternative to Bitcoin if store of value and price gains are not your top priority when choosing.
Bitcoin cash disadvantages compared to Bitcoin
BCH is less known and does not have the capitalization of Bitcoin. It still frequently moves into the top 10 list of coins by market cap. However, ultimately, Bitcoin Cash transaction is less secure and will likely underperform when compared to Bitcoin transaction.
Technical similarities – Bitcoin and Bitcoin cash
Since both Bitcoin and Bitcoin Cash were derived from the same original blockchain, they are very similar. Bitcoin transactions and Bitcoin Cash transactions are both done on a distributed ledger called blockchain that uses a peer-to-peer network to maintain a semi-anonymous payment system.
The only real difference between Bitcoin and Bitcoin Cash is in their block specification. Bitcoin Cash has increased its block limit, which allows for faster transaction speed and a larger volume of transactions to be stored per block.
Mining both BTC and BCH was first done with pretty much the same ASIC miners and competed for miner power for some time. Over time some specialties developed, and they have become more technically different.
How high will the price of Bitcoin and Bitcoin Cash move?
Like in any other market, the price of both Bitcoin and Bitcoin Cash is determined by the demand and the supply of the market. As we see general interest in cryptocurrencies and crypto exchanges increase over the years, we can expect the demand for digital money and its exchanges to increase further.
Bitcoin max supply – 21 million
On the other hand, the supply of Bitcoin is slowly reducing. This is due to a reward halving every 4-5 years to reach a total supply of 21 million BTC. Therefore, the supply of Bitcoin is diminishing, while the demand is increasing. Naturally, this should lead to an increase in price over time.
Similarly, BCH has a limited supply also as it uses the same principle of only ever having 21 million coins. Therefore, the same principles apply to Bitcoin Cash – if the demand for digital coins continues, we shall see an increase in price over time.
However, which of the coins will perform the best? It will likely be Bitcoin as it draws more attention day by day, and many institutional investors are ready to purchase millions worth of this cryptocurrency.
When will Bitcoin reach $100,000?
Bitcoin’s price has been nothing short of a rollercoaster, with twists and turns that have left both investors and casual observers on the edge of their seats. When Bitcoin’s price reached an all-time high of over $64,000, it left many to wonder if the sky was the limit and if BTC price would tend toward $100K. But since then, the price has taken a dramatic dip, losing nearly a significant value in the long term.
In early 2022, Bitcoin reached a peak of around $40,000, generating excitement among investors who had high hopes for the currency’s future. However, as the year progressed, the price began to experience volatility, with several dramatic drops and rallies. One of the most notable downturns occurred in May 2022 due to Terra’s ecosystem crash, when Bitcoin’s price dropped to around $30,000, prompting some investors to panic and sell off their holdings and resulting in a decline in Bitcoin transactions.
Since then, Bitcoin’s price started losing investors’ confidence, and it broke below multiple-month highs. Moreover, in November, BTC price experienced a severe plunge as it came across a massive selloff due to crypto exchange giant FTX’s sudden demise. As a result, Bitcoin witnessed a spike in short positions and liquidation in long positions, slumping the asset below the $16.5K price level.
However, despite the bankruptcy filing of Celsius, FTX, and LUNA’s crash in 2022, Bitcoin price has made a bullish start in 2023 as it has climbed over 30% since January. Though it is still a far cry from the $68,990 record high bitcoin recorded in Nov. 2021, it has filled investors with bullish expectations. Moreover, with inflation showing signs of cooling down and economic indicators pointing to a slowdown in U.S. economic activity, traders are feeling optimistic about the possibility of a reversal or at least a softening of the Federal Reserve’s rate hiking strategy. Hence, investors believe this is a start of a new era where BTC’s $100K price tag is brewing on the horizon.
Some experts believe that Bitcoin’s price could indeed reach $100,000, citing factors such as increased institutional investment, growing mainstream acceptance, and a limited supply of the currency. These factors, they argue, could combine to create a perfect storm that propels Bitcoin to new heights.
Others, however, are more cautious, noting that the cryptocurrency market is notoriously volatile and unpredictable. They point to factors such as regulatory uncertainty, potential security breaches, and the emergence of competing cryptocurrencies as reasons to temper expectations and plunge the digital asset to $10K.
Decoding Bitcoin’s $100K Mark from Bull Cycles
Predicting the future price of Bitcoin is a challenging task, given its volatile nature. However, one way to examine the likelihood of Bitcoin reaching $100,000 is by studying its past market cycles.
When Bitcoin was launched in 2009, it was trading for less than a penny. However, about a year later, the cryptocurrency experienced its first rally, with prices surging to over $30 per BTC. This was followed by a bear market that saw Bitcoin’s value drop to around $2.
In 2013, Bitcoin experienced another rally, reaching an all-time high of over $1,200. This resulted in a 40,000% return on investment for those who had bought at the previous all-time high. However, Bitcoin’s value depreciated to under $200 over the next year.
In 2017, Bitcoin entered another bull market, with prices appreciating to about $20,000, an 800% return from the previous high of $1,200. This was followed by a bear market that saw Bitcoin’s value plummet to a low of about $3,200.
In the wake of the COVID-19 pandemic, Bitcoin reached an all-time high of just under $65,000 per coin. However, it soon dropped to $29,000. In November 2021, Bitcoin saw heavy momentum, leading to new all-time highs of about $69,000. Over the next few months, the price fell to $42,000 following multiple global economic crises and two catastrophic crypto company implosions (FTX and Terra Luna). However, early 2023 saw a surprising pump, with Bitcoin breaking through a few significant resistance levels. Following this resurgence, Bitcoin now has a much greater chance of reaching $100,000 in 2023.
If Bitcoin’s bull cycles continue to grow at a modest pace, as previous cycles have demonstrated, it is possible for the cryptocurrency to reach $100,000, which would put Bitcoin’s market cap at roughly $2 trillion, not far behind Microsoft’s market cap of $2.4 trillion.
When will Bitcoin reach $1 million?
Predicting when Bitcoin will reach the $1 million mark is a lot harder. Surely this will not be done in the current bull cycle. Therefore, much depends on how high Bitcoin will go during the current long-term bullish cycle.
If Bitcoin can breach the $100,000 mark and continue its momentum towards $200,000-$250,000, we could see Bitcoin reach the $1,000,000 mark in the next 3-4 years. Much depends on what the price action will be during the current bull cycle.
Suppose institutional investor demand continues pushing the market higher and Bitcoin gets even more recognition as a solid investment, with whom to add extra returns to any portfolio. In that case, we might see BTC reach the $1 million mark by the end of 2025 for sure.
Where to buy Bitcoin Cash?
Traders who held BCH on exchange wallets were initially outraged by the lack of support
Both crypto-assets can be purchased on practically any crypto exchange as they are well-known and demanded. During the first weeks after the hard fork, BCH was not supported by every exchange, causing outrage for traders who held their coins in exchange wallets.
Bitcoin Cash available on most exchanges – Bitcoin on every exchange
The issue of BCH not being available drove traders and investors away from those exchanges. Therefore, over time, this issue was solved, and today, practically any exchange allows one to buy and sell Bitcoin Cash without any restrictions. Consequently, you can pretty much choose any exchange if you want to trade or invest in Bitcoin Cash.
Bitcoin Cash Adds More Upgrade
Bitcoin Cash has had a complicated journey when it comes to implementing updates. In the recent past, the network encountered a tough situation when the developers of the most dominant node, Bitcoin ABC, proposed a new ruleset. The new ruleset proposed a change in how mining rewards were distributed, granting Bitcoin ABC a portion of them.
However, the majority of the community, including alternative node software teams, did not agree with the proposed change and let the Bitcoin ABC development team fork away. Even though Bitcoin Cash held onto its ticker and had the majority of hashrate at that time, Bitcoin ABC split entirely and created its own chain.
This wasn’t the first time Bitcoin Cash had to face a contentious hard fork. Prior to that, the network faced a similar situation that pitted the lead developer of Bitcoin ABC, Amaury Sechet, against Craig Wright over specific changes. This resulted in a “hash war” that led to the birth of BitcoinSatoshiVision (BSV), where miners supporting one chain fought against those supporting the other.
Moreover, Bitcoin Cash underwent a successful update that brought a set of crucial changes to the network. The upgrade included new features that would enhance user experience and strengthen security measures against double-spending and execute Bitcoin cash transactions smoothly.
According to the report, the new rules were implemented seamlessly, with 82 blocks mined under the updated protocol. This marks a significant shift in the way developers handle protocol updates, marking a departure from previous approaches.
Bitcoin or Bitcoin Cash: Which One Should You Choose?
If you want faster transaction times and smaller transfer fees, go for Bitcoin Cash transactions.
Ultimately, the choice is up to you. There are advantages and disadvantages for both BTC and BCH. If what you are looking for is investing in a stable long-term coin that has the market size and popularity over the world to keep going higher over the years, choose Bitcoin. Alternatively, if you want faster transaction times and smaller transfer fees, then go for Bitcoin Cash.
Both of them are set to increase in value over time as they are the leaders of cryptocurrency markets. Bitcoin Cash transaction is a popular option for those who hate to wait for their transaction to be processed from one wallet to another. Therefore, if you want speed – choose BCH. If you want a store of value – choose Bitcoin transaction.
Conclusion – Bitcoin is still the king
Bitcoin has been the blockchain cryptocurrency that everyone has spoken about for the past years. Despite many Bitcoin deniers and critics’ attempts to prove that there are other alternatives, BTC continues to dominate the market with an ever-increasing market cap that recently broke the $1 trillion mark.
Many analysts predict that BTC has the potential to overtake the market cap of gold in either this bullish market cycle or the next. Gold`s market cap is currently valued at around $10-$11 trillion. Therefore, Bitcoin still has more room to grow in order to reach this price prediction.
However, when considering how fast Bitcoins price has increased over the years, we are sure that the $11 trillion mark is more than a possibility for Bitcoin.
Alternatively, Bitcoin Cash does offer an interesting alternative it has developed more advanced features and offers a technologically better blockchain solution. However, the market simply does not recognize BCH and Bitcoin, and we can see many other projects outperforming BCH in the upcoming years.
That’s it – keep reading further!
That`s it for our guide on Bitcoin and Bitcoin Cash. For further reading, see our long-term price prediction on Bitcoin as well as several other major cryptocurrencies such as Ripple, Monero, and Chainlink.
When did Bitcoin Cash forked from Bitcoin?
Bitcoin cash began its journey when it was forked from Bitcoin in 2017.
What's the main advantage of Bitcoin Cash over Bitcoin?
Increased Bitcoin Cash block size allows for faster transactions and a decrease in trading fees while initially allowing the use of the same Bitcoin miner in securing the network.
What is the cause of the stagnating price of Bitcoin Cash?
The demand in the market simply cannot outmatch the ever-increasing supply of the coin. This trend is likely to continue in the future.
Is Bitcoin Cash a good investment in the short term?
The price increase for a single BCH is not worth the investment if you are seeking a return on capital. There are many altcoins that have performed and likely will perform better than Bitcoin Cash.
What determines the price increase for Bitcoin and Bitcoin Cash?
The same principles apply to Bitcoin Cash and Bitcoin – if the demand for digital coins continues, we shall see an increase in price over time.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.