Bitcoin cash might be headed to the moon.
That is, if yesterday is anything to go by.
Since the start of August the bitcoin cash market cap has swelled from 5 billion to the 25 billion.
Bitcoin cash is not bitcoin. Although they do share much in common.
When a disagreement happens with the direction of a cryptocurrency, the disagreeing parties can split into two.
This is known as a ‘hard fork’, because the technology splits into two.
Bitcoin cash is actually the original version of bitcoin, and bitcoin was the hard fork. Or in other words, the divergence.
The reason the newer currency kept the name (bitcoin) was because it had more support in the community. At the time, it wasn’t even close. It was the almost-universally accepted direction for the technology.
Therefore it was the ‘dominant’ path.
The Difference Between Bitcoin and Bitcoin Cash
Today however, things are not so clear.
Bitcoin was originally conceived by a mysterious man named Satoshi.
He outlined a doctrine that was supposedly an outline for the new financial world.
Many now believe that bitcoin cash aligns with this vision more than bitcoin does.
The main difference between the two is the size of the ‘blocks’ which hold the information in the blockchain.
This might sound boring, but it’s important. Because it relates to scalability. The biggest issue in the crypto world.
Bitcoin cash allows for faster transactions, at a lower cost.
This is a significant advantage over bitcoin, which could lead to a greater market cap down the line.
As it stands bitcoin cash is already the third biggest crypto by market cap, after bitcoin and ethereum.
If bitcoin cash has more days like yesterday, it could soon eclipse them both.
Junior Analyst, Money Morning
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