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Bitcoin Vs Bitcoin Cash: Which is a Better Investment in 2024?

7 mins
Fact Checked
by Ish Bautista
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When discussing the Bitcoin vs Bitcoin Cash comparison, knowing which is better could save you a lot of hassles. In this guide, we look at how both coins differ and their similarities.

What is BTC?

bitcoin cash web3 crypto

In 2008, Bitcoin was founded by Satoshi Nakamoto as one of the first and biggest cryptocurrencies. Initially proposed as a decentralized means of payment, it quickly became the favorite coin of crypto traders. One of the biggest things that remains a mystery is the exact identity of Satoshi Nakamoto, a pseudonym that the founder used. 

For a short time, when the cryptocurrency was in its infancy when the currency held very little real value, many miners and traders interacted with the asset for fun or as an experiment.

However, two years after its launch, the first use case of Bitcoin as a medium of exchange would turn out to be a man paying for two pizzas at Papa John’s. In 2010, BTC became available to trade on exchanges against fiat currency, such as the US Dollar and the British Pound. This led to a significant increase in its value, from pennies in 2009 to $33k today. 

But, Bitcoin’s ride has not been smooth since 2009. It’s been faced with criticisms left, right, and center. Crypto skeptics have ripped it about its extremely damaging carbon footprint, its use to transfer money in illegal activities, and the lack of accountability (something many governments are currently trying to tackle). Commanding almost 50% of the cryptocurrency market, BTC is seen by many as a great option for traders in 2024. 

What is BCH?

Bitcoin Cash (BCH) is a cryptocurrency that broke away from Bitcoin (BTC) on Aug, 1, 2017. Founded by a group of people who had previously used Bitcoin, the coin resulted from a four-year dispute about the scalability of Bitcoin. 

In 2008, Satoshi Nakamoto, the founder of Bitcoin, wrote a paper called “Bitcoin: A Peer-to-Peer Electronic Cash System,” setting out what Bitcoin’s original use should be. It was partly because of how far BTC had drifted from this that Bitcoin Cash was founded.

Bitcoin Cash (BCH) Movement

In 2020, one of Bitcoin Cash’s founders, Jonald Fyookball, gave an interview, suggesting that, despite opposition and setbacks, they were pushing forward with the development of BCH to improve the cryptocurrency for its users. BCH subsequently faced attempts to fork the cryptocurrency in 2018 and 2020, one from none other than its founder, Amaury Sechet. However, according to Jonald, neither of these proved successful.

In 2020, BCH faced further controversy when a plan was revealed to fund the future of Bitcoin Cash from the rewards gained on CoinBase from the cryptocurrency. This was seen as a tax by the community. However, after several changes, this was implemented in May 2020.

As an altcoin that is considerably more affordable than Bitcoin, it has fallen from over $3k in late 2017 to about $200 today, a price accessible to most retail investors.

Which is better: Bitcoin or Bitcoin Cash?

There are several factors to note when comparing Bitcoin vs Bitcoin Cash. This section explains the differences and similarities between the two.

Since the start of 2024, at the time of writing, Bitcoin has dropped 10.7% year to date, according to CoinMarketCap. By comparison, Bitcoin Cash has fallen 13.48%, slightly more than Bitcoin.

At the end of 2023 and early 2024, BCH had both a greater increase in price, percentage-wise, and decrease. Meaning if you were holding BCH, you would have had a greater return on investment (ROI) when the price increased and a lower ROI when the price decreased.

BTC vs BCH price: tradingview.com
BTC vs BCH price: tradingview.com

For investors looking to get into the market, BCH is a far safer investment option. However, if the investor is banking on greater volatility to trade cryptocurrencies, this is not the best option despite the low fees. BTC is also best if you want to hold your purchasing power over time. 

Buying the dip vs HODL

The dilemma of BCH vs BTC is important for investors, depending on the individual investor’s strategy. Many investors trade cryptocurrencies, believing that this will give them greater returns. In this case, the volatility that BTC brings creates profit opportunities. On the flip side, it could also result in significant losses. 

However, for short-term investors, BCH is a more accessible and stablecoin, which will likely bring greater returns over extended periods. The coin is more within the price range of the everyday retail investor, meaning that day traders can build up a sizable cryptocurrency portfolio. 

Portfolio building

While trading is the exciting part of cryptocurrency, it may prove more beneficial to build a portfolio of altcoins, lower in value and easier to afford, over the long term. At the current price of Bitcoin Cash, for most investors, this is achievable and gives a better sense of progress towards a good ROI.

Efficiency

While the lower price of Bitcoin Cash is appealing, it also has the advantage of quicker transaction processing times and lower transaction fees.

One of the major takeaways of the Bitcoin vs Bitcoin Cash comparison is that, unlike BTC, BCH is more energy-efficient. This is positive news for ESG-conscious investors; BCH uses only a fraction of Bitcoin’s energy. The energy-saving from BCH itself is a massive positive for the planet. In this regard, BCH wins hands down.

Is Bitcoin Cash as big as Bitcoin?

In 2017, BCH was created from a Bitcoin crypto fork amongst disagreements about BTC’s future. In 2018, Bitcoin Cash transactions represented about a tenth of Bitcoin’s, suggesting it had yet to reach parity with other cryptocurrencies. Despite this, just as there are 21 million Bitcoins, there are also 21 million Bitcoin Cash. 

Nevertheless, the number of active Bitcoin addresses stood at just short of one million at the time of writing. However, the number of active Bitcoin Cash addresses hovers around a million. While still in its infancy, Bitcoin Cash offers opportunities for those with limited funds to grow their portfolio as this number increases with it. 

Is Bitcoin Cash worth investing in?

Bitcoin Cash came as a reaction to the direction that Bitcoin was taking in 2017, as the price of Bitcoin began to make it inaccessible for many. Bitcoin Cash makes cryptocurrency more accessible to retail investors and has grown considerably more than Bitcoin last year. For HODLers, Bitcoin is a good choice. For traders, Bitcoin CASH would offer more opportunities. 

Should I buy BTC or BCH in 2024?

Whether or not you should buy BTC or BCH in 2024 is entirely up to you. However, you should keep a few things in mind. BCH receives a significantly lower transaction volume than BTC, suggesting low usage. As a result, BCH naturally collects lower transaction fees.

BTC vs BCH transaction volume: bitinfocharts.com
BTC vs BCH transaction volume: bitinfocharts.com

Moreover, transaction fees double as a blockchain network’s security spend. This implies that Bitcoin has a higher intrinsic value than BCH. Moving on to fundamental analysis, Bitcoin has also seen greater utilization, especially with the popularity of inscriptions.

The matter of which coin to choose boils down to your preferences. If you want to mine, then BCH may be a better option, as the Bitcoin mining atmosphere is highly competitive.

If you are looking for an asset that not only holds its value over time but increases with time, then BTC may be a better option. Do you want to use the network; if so, how do you want to use it?

Both Bitcoin and Bitcoin Cash have a few services and businesses that support various activities, such as ATMs, cards, or money transmitters. On the other hand, if you want to use the actual network, both have limited functionality for things like smart contracts. However, Bitcoin has slightly more programmability.

Pick the strategy not just the cryptocurrency

The evidence is clear from our Bitcoin vs Bitcoin Cash review. Bitcoin is more suited for long-term value investors. BTC is popular. Many institutions are pouring funds into it, consistently posting massive gains over the long term. However, if you’re an ESG advocate or want to invest in an asset that provides short-term returns, you might want to pitch your tent with BCH. At the end of the day, you are choosing the scenario more than you are choosing the individual coins.

Frequently asked questions

What is the difference between Bitcoin and Bitcoin Cash?

How was Bitcoin Cash created?

Is Bitcoin better than Bitcoin Cash?

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Jimmy Aki
Based in the United Kingdom, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills, having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for blockchain regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.
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