Home Crypto Understanding the several types of Bitcoin

Understanding the several types of Bitcoin

40
0


If you are immersed in the world of cryptocurrencies it is evident that you know what Bitcoin is all about, however, for those who take their first steps in this world it is necessary to clarify what is Bitcoin, talk about the different types of Bitcoin to avoid confusion and what is the main foundation of each of them.

First we have Bitcoin, the most popular and important cryptocurrency in the ecosystem. This digital currency was devised in 2008 and was born as a payment alternative created by “Satoshi Nakamoto” to compete with the main ones in the field such as Visa and PayPal, however by 2017 the currency encountered a problem, the processing times of its transactions. We say this because while Visa executed 24,000 transactions per second Bitcoin only executed 7 transactions in the same period of time. As a solution to this problem, the second “type” of Bitcoin was born:

Bitcoin Cash (BCH)

The problem faced by Bitcoin was based on the size of the transaction blocks that supported a maximum weight of 1MB. This led to the birth of Bitcoin Cash, which initially supported 8MB and currently supports up to 32MB, becoming an “improved version of Bitcoin” because it processes transactions faster, more efficiently and more economically. This made it the third cryptocurrency with the highest market capitalization in Coinmarketcap within days of its birth. Bitcoin Cash is therefore a cryptocurrency to watch closely and ensure a secure Bitcoin cash (BCH) wallet.

In the early days after its birth Bitcoin Cash was among the most sought after cryptos on the market reaching prices of up to $4,355, however, the various crypto winters and other currencies with more functionalities have passed it by and it currently ranks 30th among the top cryptocurrencies with a price of only $142.

Bitcoin Satoshi’s Vision (BSV)

The BSV was born seeking to recover the original postulates of Bitcoin in its original conception. Its origin comes from a fork of Bitcoin Cash, which in turn was born from a fork of Bitcoin. Said birth dates back to November 15, 2018 under the premise of:

“Bitcoin SV is the original Bitcoin. It restores the original Bitcoin protocol and will keep it stable, scaling it to a massive level. Bitcoin SV will maintain the vision proposed by Satoshi Nakamoto in his 2008 white paper.”

This project was an even bigger improvement for Bitcoin than Bitcoin Cash was at the time, as instead of the 32MB per block supported by BCH the BSV was born with 128MB. In terms of its price BSV has not been as widely accepted, however, it remains among the top 50 coins in the crypto universe with a current valuation of $62. 

Apart from these two “Bitcoin Types” there were others such as Bitcoin XT, Bitcoin Unlimited, Bitcoin Classic, but they were not as accepted as the ones previously mentioned. 

To differentiate them in case you are starting in this world, the most important thing is the acronym (BTC, BCH and BSV) and then the price, since it is not the same the Bitcoin with a quotation of $23,000 than the Bitcoin Cash with $142 and the Bitcoin Satoshi’s Vision with a value of $62. 



LEAVE A REPLY

Please enter your comment!
Please enter your name here