Bitcoin has always been a center of interest among investors and people all over the world. Ever since its inception and global growth, crypto enthusiasts have even considered it as the best alternative to fiat currencies. It is the only crypto coin from where the concept of cryptocurrency started developing to the whole world. Many people even become richer by investing in it during its initial days. But being so much popular, what lead to hard forks of Bitcoin coming into existence?
This question is indeed have triggered every crypto enthusiast to know the valid reason behind the spawning of Bitcoin hard forks. If you go with Bitcoin technical analysis today, then you will discover that despite so much acceptance in the world, Bitcoin did not comply with some technical needs, and this lead to the emergence of hard forks like Bitcoin Cash and Bitcoin SV to overcome those shortcomings.
Both these hard forks of Bitcoin are special in their characteristics, and also differ in terms of market capitalization. So let us delve more into it, and know about the advantages and disadvantages of Bitcoin SV and Bitcoin Cash, and how they differ from their elder sibling Bitcoin.
Bitcoin And Bitcoin Cash
To start our discussion on hard forks of Bitcoin, let us begin with Bitcoin Cash Vs Bitcoin. As we all know that the latter cryptocurrency was founded in 2009 by Satoshi Nakamoto. Bitcoin emerged as a new form of P2P electronic cash technology and posed a big challenge to the financial environment and banking too. But it did have some pitfalls.
And one of the major one to mention is the problem of scalability. The blockchain of Bitcoin is capable to manage around seven transactions in seconds, only, and it is all due to the 1MB block size. This became a big matter for crypto advocates. They doubted Bitcoin competency with Visa, which can process 65,000 transaction messages a second.
This spawned the need for the hard forks of Bitcoin that would overcome the persisting technicality issue of scaling in the latter cryptocurrency. There have been many differences in opinions regarding the output of updating. If you follow BCH news crypto, then you will know about the emergence of Bitcoin Cash in August 2017. This initiative was taken by a group of developers and miners.
Now when it comes to point out the difference between Bitcoin and Bitcoin Cash or say, the actual reason for the need for this latter hard fork, is its increased block size. Bitcoin Cash comprises 8MB block size, bigger than Bitcoin’s 1MB size. This is enough to give you an idea of how BCH fares better to its older sibling in terms of managing multiple transactions, regularly.
Another major advantage of Bitcoin Cash is the fastest speed in terms of processing payments, curbing unnecessary long hours of patience, which has been seen in the Bitcoin network. Currently, BCH has gained much importance among the retailers as a popular payment mode.
Bitcoin And Bitcoin SV
After knowing a brief about Bitcoin Cash and its need to overcome the shortcomings of Bitcoin, and how it excelled in terms of block size bigger to the original. This must-have answered the discussion on hard forks of Bitcoin; are they better than the original. Now, let us shift our focus on to another hard fork of Bitcoin, which is Bitcoin SV. For your information, the word SV stands for Satoshi Vision. But what is Bitcoin SV? Well, if you want to know it, then you need to refer Bitcoin whitepaper which was published 12 years back in October.
Just like we did a comparison between Bitcoin and Bitcoin Cash above to know the need of hard forks of Bitcoin, similarly, we need to know about the emergence of Bitcoin SV. Well, here also, the matter circles upon block size. Like Bitcoin Cash, Bitcoin SV also differs in terms of block size, which is 128 times bigger in comparison to the 1MB block size of Bitcoin. This Bitcoin hard fork even claims to replace the payment system in terms of security, good user feedback, and affordable merchant cost.
It won’t be wrong to say that Bitcoin is the underlying reason for the spreading of cryptocurrency waves to the whole world. But there have been some major loopholes in the form of scalability and block size. This lead to the spawn of hard forks of Bitcoin – which are Bitcoin SV and Bitcoin Cash. Both these hard forks fare better in terms of increased block sizes in comparison to the 1MB size of Bitcoin. Where Bitcoin Cash comprises 8MB block size, Bitcoin SV exceeds in 128 block size much bigger to its sibling and the older one, Bitcoin. But whether these hard forks will maintain their existence in the crypto zone? Let’s see what lies ahead.