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What’s Most Fascinating About Bitcoins

Detailed Analysis of Bitcoin, Bitcoin Cash, and Bitcoin Diamond

Many newbies in the cryptocurrency sector are usually confused whenever they hear Bitcoin Cash or Bitcoin Diamond. Many even think that there are no differences between the three coins. Bitcoin Cash and Bitcoin Diamond are two coins formed as a result of Bitcoin forking. 

Forking is when an alteration is being made to the codebase or protocol of the initial cryptocurrency, resulting in another crypto with its own set of rules.

The main reason for Bitcoin forking is to add more functionality to the existing network, increasing its efficiency or transaction speed. BCH and BCD are both Bitcoin forks, and investors can trade BCH to BCD as these are two separate digital assets.

Bitcoin

Bitcoin is the first virtual currency created by an individual or group of people with the pseudonym Satoshi Nakamoto in 2009. Since then, it has gained traction, and many investors have invested in the coin. 

The virtual currency transaction records are stored in a distributed ledger known as blockchain. These transaction history records are stored across several nodes. Once a new transaction is carried out in the blockchain, it is sent across the nodes where the miners carry out some processes to validate the transactions before being added to the blockchain. Miners that can successfully validate the transactions are rewarded with a certain amount of the coin.

Mining bitcoin was initially possible on a standalone PC, but the upgrade of the coin technology has resulted in the need for sophisticated, powerful machines to validate and mine Bitcoin successfully.

Bitcoin Cash

Overview

Bitcoin Cash is a fork of Bitcoin created as a result of increasing the block size of the existing Bitcoin protocol up to 32MB. This was done to ensure that the block would be large enough to accommodate more transactions.

Purpose

The main purpose of Bitcoin Cash is to enhance the transaction speed and scalability of the existing Bitcoin protocol. The block size was increased from the existing 1MB to 32MB, which will allow the block to contain more transaction records at a time.

How It Differs from Bitcoin

One of the main features that make BCH different from BTC is its ability to process transactions faster. While BTC can process about 7 transactions per second, BCH can process 116 transactions/sec. It also charges a low amount of transaction fees compared to Bitcoin.

Bitcoin Diamond

Overview

Bitcoin Diamond is a Bitcoin hard fork that Team Evey and Team 007 created after claiming that the bitcoin protocol does not provide the decentralization features aimed by Satoshi. The team behind the coin made some alterations to the Bitcoin protocol to ensure faster transactions, easier mining, and lower fees.

Purpose

The main purpose behind the creation of Bitcoin Diamond is to solve the issues with high transaction fees and transaction confirmation time and increase the coin’s scalability. 

How It Differs from Bitcoin

Bitcoin Diamond can process transactions faster than Bitcoin owing to the 8MB block size compared to 1MB of the Bitcoin block size. Bitcoin Diamond also boasts of lower transaction fees within the Bitcoin network.

Another important thing that differentiates the coin from Bitcoin is the ease of mining and ensuring that mining of the coin is affordable for beginners as well.

Conclusion

Despite sharing the same root blockchain, the three assets cannot be considered the same as they have many distinguishing features. Some of them are outlined in the table below:

BITCOIN BITCOIN CASH BITCOIN DIAMOND
$40+ ~$0.003 Transactions on its network are really cheap
1MB block size 32MB block size 8MB block size
Can process 2 to 7 transactions per second Can process up to 200 transactions in a second Can process 100 transactions in a second

In conclusion, the three coins are good investment options depending on the features you are looking for. If you are interested in a coin that offers easy mining with low transaction fees and faster processing time, Bitcoin Cash is advisable. 

Being a #1 coin, Bitcoin is the most obvious choice, though — it is available on ALL crypto exchanges and has the maximum number of trading pairs: popular ones like BTC to TRX and rare combinations like BTC to FTM. Bitcoin Diamond sits somewhere in between, being a good option for those starting their trading career.

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