The crypto market is a truly live one. It takes hits, it goes down, it takes wins it goes up. It is a real rollercoaster of emotions and it takes a certain composure to enter the crypto world and make any sort of success there.

When it comes to the crypto world there are a lot of things to know and most of them you know by now. There is more than one crypto that you can trade with, there are constant updates and upgrades of the system, there are NFTs and much, much more. To not confuse you right now we will be focusing on the Bitcoin side, namely Bitcoin and Bitcoin cash.

Believe it or not even now, after so many years and so much info on the web, people can’t make a difference between these two and this is why we and Gaming Gadgets decided to set the record straight and talk to you about these two and make a distinct difference between these. Stick with us till the end and finally learn how to make a distinction and avoid any future mistakes you may make when entering the crypto market, or before you make any sort of payments in these.


Bitcoin or BTC and Bitcoin Cash or BCH do share a lot of similarities that go beyond their names. This is what makes them so confusing and often mistake one for another. All of you know that BTC was the first cryptocurrency that was ever created and for that, it is often considered digital gold. All cryptocurrency is treated as a store of value and inflation hedge which is a good and bad thing at the same time, depending on what type of trader you are.

On the other hand of this, BCH is a cryptocurrency meant to serve as digital cash with everyone supporting it and trying to make sure it is cheap and easy to use. BCH was created through something called a Hard Fork of BTC. To those of you that have a hard time understanding this, it means that both of these assets, Bitcoin and Bitcoin Cash, share a transaction history, common code base and more. A hard Fork is a radical upgrade to the open-source software behind the blockchain of crypto like BTC.


It happens when a permanent divergence from a blockchain’s latest version is created and some of the computers that run the network can no longer meet the consensus. This creates that fork in the blockchain where one side continues to go by the old set of rules while the other side goes by a new set of rules. This fork happened to Bitcoin in August 2017 and since then we have BTC and BCH, both standing strong all this time.

Now as you could read the BCH stemmed from the BTC because the Bitcoin network was too clogged with the transactions it couldn’t process in time. The processing of the transactions was solely dependent on the transaction fee, meaning the higher the fee the faster the transaction went through. This used to set users back as much as $50+ per transaction meaning not all of them could afford that, and pricing them out of the network. This is where the scalability issues of the BTC became apparent and to solve it the community split into two major solutions – one was to increase the block size to accommodate for additional transactions while the other maintained the 1MB block size and scale via Layer2 solutions.


The major difference between BCH and BTC kept growing from this point on, mainly because developers on each side had different goals in mind. The differences now are so big that both of these are seen as completely different assets in the community.

One of the biggest differences between these two assets is the difficulty of adjustment. This is an algorithm added to BCH because both of the networks used the same SHA-256-bit hashing scheme BTC miners could move to the BCH network when it becomes more profitable to mine there. this also means that the computing power of the network can have wild variations due to market fluctuations. The algorithm we mentioned ensures that blocks are generated at a stable rate every 10 minutes by either cutting difficulty if it is behind schedule or by doubling it if they are ahead of schedule.

Block size differences are another thing that set these two apart. While the BTC retained its 1MB block size the BCH has grown the block sizes have grown up to 32 MB. Translated to your and my language, it means that the transactions on BCH now cost less than a penny and can process as many as 200 transactions per second. The fact that BCH hasn’t been processing enough transactions to fill up its extra block space, the size of the blockchain hasn’t grown exponentially, as was predicted.


Another big difference is smart contracts and decentralize finance. As you probably know by now, BTC does not support smart contracts, although work is being done to help build decentralized finance Fee-Fi services on top of that. In the meantime, BCH has started using smart contract languages like Cash Script to enable more complex functions on it. Cash Script is aiming to bring D5 to Bitcoin Cash to help it compete with Bitcoin and Ethereum. Some implementations like Cash Shuffle and Cash Fusion are there to help increase privacy on the network.

Bitcoin for begginers is easy for explain. Both of these crypt assets have good and bad sides and both of them are stable and growing. Bitcoin is Bitcoin and we are used to it. it is supposed to be the crypto coin that will change the perception of the world and the way we do our business in the future, while Bitcoin Cash is relying on it to be a peer-to-peer electronic cash with low fees and faster processing speeds.

The monetary policy of both of these assets is the same, which is rather strange, stating that only 21 million coins will ever be created on each blockchain and the issuance of the new coins is halved every 210000 blocks, or roughly, every four years.