Bitcoin Cash is a crypto currency designed for everyone. It offers the lowest transaction fees, fast transactions, and can be spent at thousands of businesses worldwide.
Sounds pretty great, right?
Well Bitcoin Cash is currently priced at $607.82 so you don’t even have to be a millionaire to buy some, whether you want to use it to pay for things or hold it as an investment. (This is not investment advice, just an option.)
I’m sure you have some questions, so let me try to answer them...
What’s wrong with the Old Bitcoin?
The price of Old Bitcoin is currently the highest of all crypto currencies. Fans of the Old Bitcoin like to say it’s "better than VISA" or “the future of money”. Unfortunately, anyone that tries to actually use it this way will learn the hard way that this is absolutely not true. Here’s why:
Both the Old Bitcoin and Bitcoin Cash process transactions in batches. These batches run every 10 minutes, and each of these batches has a limited amount of space for transactions.
Think of it like buses full of people with cash they are trying to take to someone. These buses show up once every 10 minutes. Once the bus is full, no more people with cash (transactions) can be sent until the next bus arrives.
When there are lots of transactions being sent, Old Bitcoin decided to have users to compete via a “fee” to determine who gets to board the bus and who has to wait. Think of it like bus fare, except whoever pays the highest fee gets in first, while the people not willing to pay as much have to wait 10 minutes for the next bus to arrive.
The problem is, when there are lots of people trying to make transactions, the next bus's fees are also high, so people unable to pay them wait yet another 10 minutes. These people will continue to wait until they either increase their fee or the number of transactions decreases.
“Well that’s not a big deal right? I mean Venmo and Paypal charge fees, too”
That’s true, they do. Here’s a table of the fees charged by Zelle, Paypal, Old Bitcoin, and Bitcoin Cash on a few different transaction amounts:
|Venmo Fee (3%)||$0.30||$3.00||$30.00|
|Paypal Fee (2.9% + $0.30)||$0.59||$3.20||$29.30|
|Old Bitcoin Fee (fluctuates with demand)||$0.70||$0.70||$0.70|
|Bitcoin Cash Fee ($0.0014)||$0.0014||$0.0014||$0.0014|
As you can see, Old Bitcoin’s fees make it basically useless for small transactions. Sure, if you are a millionaire moving thousands of dollars around, maybe you don’t mind paying $0.70. However, if you want to send a friend $5, a $0.70 fee to send $5 is just stupid.
“Wait, is that right? Bitcoin Cash fees are $0.0014? -- FRACTIONS of a cent? How?!”
As we discussed earlier, Old Bitcoin charges ever increasing fees to determine who gets their transactions on the bus. If you aren’t able or willing to pay the current top fee rate, you’ll be in the back of the line. You may have to wait several hours or even days for your transaction to process.
Bitcoin Cash took a different approach. Rather than gouging users with ever increasing "bus fare", they just built a bigger bus!
Bitcoin Cash’s "bus" is 32 times larger than the Old Bitcoin.
This means there will have to be 32 times the current number of Old Bitcoin transactions before the fee increases beyond $0.0014. Just how many is that?
The answer is 64,000 transactions every 10 minutes, or roughly 224 transactions per second. Old Bitcoin can only handle 2,000 transactions every 10 minutes, or roughly 7 transactions per second.
7 transactions per second? That hardly sounds like ‘the future of money’
I couldn’t agree more. As a comparison, VISA’s credit card network processes roughly 1,700 transactions per second. While that’s more than what Bitcoin Cash can process today, the Bitcoin Cash network is designed to scale up to meet demand. Should fees ever begin to rise, a simple software change would bring them right back down again.
Check out this cool visualization by TxStreet.com that shows the actual number of people waiting and buses for Bitcoin Cash and Old Bitcoin! You'll see thousands of people waiting for tiny buses with high fees on the Old Bitcoin side, and giant buses with no wait on the Bitcoin Cash side! If you watch long enough, you'll even see people kicked out of the Old Bitcoin buses because other people were willing to pay higher fees!
Okay so if Bitcoin Cash is so great, why aren’t more people using it?
That’s exactly the problem this site is attempting to solve. Old Bitcoin is all over the television and internet. It gets lots of attention, and many people don’t even know there is a better Bitcoin out there. It’s taken nearly two pages of text here to explain the differences between the Old Bitcoin and Bitcoin Cash. Short news bites and tweets just don't have the bandwidth to explain the clear advantages of Bitcoin Cash over the Old Bitcoin.
Last time the Old Bitcoin went way up in price there were a bunch of scam coins and people lost a bunch of money. How do I know Bitcoin Cash isn’t just another scam?
Bitcoin Cash has been around as long as the Old Bitcoin has, in fact, it started from the same blockchain! Bitcoin Cash made a change to it’s programming and separated away from Old Bitcoin once it became clear that Old Bitcoin wasn’t good enough to truly be the future of money. A large number of people in the crypto currency space actually believe that Bitcoin Cash is the “real Bitcoin”, as it enables regular people to send any amount of money between each other quickly with very low fees, which was what Bitcoin was always supposed to do.
There are a ton of other crypto currencies out there now, why should I care about Bitcoin Cash?
Firstly, the number of companies accepting Bitcoin Cash for payment are second only to Old Bitcoin. There’s no use in having a crypto currency if you can’t actually buy anything with it.
Then, without getting too technical, the critical component of any crypto currency is the security of its blockchain. Hundreds of thousands of crypto miners around the world crunch numbers day and night to process your transactions and share the results between themselves. The more miners a crypto currency has on their “network”, the more copies of your transactions there are, and the stronger the security of the coin is.
At this moment, the Old Bitcoin has the largest number of miners of any coin securing it’s network. This is no surprise, it’s the most popular coin with the largest following. Critically, the very same miners that mine Old Bitcoin can also mine Bitcoin Cash! Once the word is out that Bitcoin Cash is better than the Old Bitcoin, all of these miners can begin mining it immediately. They wouldn’t have to buy any new equipment or build any new data centers; they would be ready to go right away.
Okay, this sounds awesome. How do I start using Bitcoin Cash?
It’s actually very easy. All of the big exchanges like Coinbase, Kraken, Gemini, and Binance make it easy to buy Bitcoin Cash under the BCH ticker symbol. You can buy Bitcoin Cash with funds from your bank account, or trade other crypto currencies like Old Bitcoin or Ethereum for it.
To keep your Bitcoin Cash secure, you can order a hardware wallet such as a Trezor or Ledger and transfer it there. Bitcoin.com also has a pretty nice Bitcoin Cash wallet that will run right on your phone!
In closing, whether you are new to crypto currencies or an Old Bitcoin user, I encourage you to give Bitcoin Cash a try. Buy a small amount, use it to buy something from Amazon on Purse.io, send it to a friend, anything. I think you will be surprised with how much better the experience is compared to the Old Bitcoin.
Thanks for reading!