What’s the difference between Bitcoin, Bitcoin Cash, Dash, Ethereum and Litecoin?
What are the differences between different cryptocurrencies? And why so many types of cryptocurrency anyway?
The first cryptocurrency was Bitcoin. It was created by Satoshi Nakamoto in 2008. (There is a lot of debate over whether this is a real name or a pseudonym.)
Since then, other cryptocurrencies have been created. Some of these are exact clones of Bitcoin but with different names, others offer some slight improvements.
Bitcoin has inspired hundreds of new cryptocurrencies. But which ones are worth investing your money into? Here’s our list of the top 10 cryptocurrencies to buy in 2018:
We’re here to help you decide what’s the difference between Bitcoin, Bitcoin Cash, Dash, Ethereum and Litecoin?
Bitcoin is the most well known of all cryptocurrencies. It’s seen as a store of value and a medium of exchange by many. At the time of writing, its price is around $7,000 with a market cap of over $120 billion. Bitcoin was created in 2009 and is the first decentralized cryptocurrency. The creator(s) chose to use a pseudonym Satoshi Nakamoto which still remains unknown today.
Bitcoin was created after the financial crisis in response to the lack of trust in centralised banks and other institutions. The idea was to create a cryptocurrency that was free from any single authority or entity that could control it. Back then it wasn’t popular and even today there are only about 25 million people who own Bitcoin (less than 1% of the world’s population).
Bitcoin Cash came about in August 2017 when a group of people decided to “fork” Bitcoin (essentially creating an identical copy), but add more transaction space making it faster and cheaper to send transactions. Because it’s effectively a copycat cryptocurrency, it has similar features as Bitcoin such as decentralisation, anonymity
What’s the difference between Bitcoin, Bitcoin Cash, Dash, Ethereum and Litecoin?
We often get asked what differentiates one cryptocurrency from another. What makes Bitcoin different from Bitcoin Cash? Why would anyone choose Litecoin over Ethereum?
Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash are all cryptocurrencies. But each cryptocurrency has a different purpose and uses a different technology. The best way to understand the difference is by reading about how these cryptocurrencies came about.
Bitcoin (BTC): The first cryptocurrency in the world
For those who are new to the world of cryptocurrencies, it can be hard to understand what separates some the different cryptocurrencies from each other. Even we find it hard sometimes, and we’ve been following cryptocurrencies for years!
In this guide, we will try to answer some basic questions about the top five best-known cryptocurrencies: Bitcoin, Bitcoin Cash, Dash, Ethereum and Litecoin.
Bitcoin
Bitcoin was launched in 2009 by a mysterious figure using the alias Satoshi Nakamoto. The smallest unit of a bitcoin is known as a satoshi.
Bitcoin was designed as a peer-to-peer system for online payments that does not require a trusted central authority. Bitcoin uses public-key cryptography, peer-to-peer networking, and proof-of-work to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses. Each payment transaction is broadcast to the network and included in the blockchain so that the included bitcoins cannot be spent twice. After an hour or two, each transaction is locked in time by the massive amount of processing power that continues to extend the blockchain. Using these techniques, Bitcoin provides a fast and extremely reliable payment network that anyone can use.
Because of its size
The world of cryptocurrencies is expanding at an incredible rate. This page was created to serve as a hub of information on the top 10 cryptocurrencies as we see them. The cryptocurrency market is extremely young and volatile, so please consider this information for informational purposes only and do not make any investment decisions without first consulting with a certified financial planner.
Bitcoin is the oldest and most established cryptocurrency, and has a market cap that is larger than all of the other currencies combined. Bitcoin’s price has been the subject of wild fluctuations since its release, but it has consistently been the most valuable cryptocurrency for years now.
Ethereum is another currency related to Bitcoin but with more of an emphasis on smart contracts than simple payment methods. It’s value has increased substantially over the past year, making it one of the most valuable cryptocurrencies (second only to Bitcoin).
Litecoin is named because it takes a “lite” amount of time to process transactions compared to Bitcoin and Ethereum. While not as valuable as other currencies on this list, Litecoin is still popular among cryptocurrency followers and worth $3 billion at last check.
Dash started out as Xcoin in 2014 and then later rebranded to Darkcoin before finally changing their name to Dash (short for Digital Cash)
Here’s the thing: Cryptocurrencies are extremely volatile. So when you invest in cryptocurrency, you should know that it’s not unlike a ride at an amusement park. And if you are into investing in cryptocurrency, be prepared for the ride of your life.
If you’re new to cryptocurrency, this term might sound alien to you. Cryptocurrency basically refers to digital or virtual currencies that use cryptography for security. Since there is no physical coin or bill, cryptocurrencies are digital and can only be purchased using fiat money (i.e., dollar, euro, yen). Cryptocurrencies also operate independently from central banking systems, making them immune from government interference or manipulation.
The difference between Bitcoin and Bitcoin Cash is that they are two entirely different cryptocurrencies based on the same blockchain technology.
Bitcoin Cash was created on Aug 1st, 2017 as a result of a hard fork of Bitcoin, which essentially means that the blockchain was split in two and Bitcoin Cash was created as an entirely new cryptocurrency. They both run on different blockchains but share the same history prior to Aug 1st 2017.
All transactions that took place before this date were carried over to both blockchains and so it is possible to trace every one of those transactions up until this
The world of cryptocurrency has seen its fair share of scams, hacks and controversy over the years. But as we’ve seen with Bitcoin, it’s still possible to have a technology that is both disruptive and well-accepted.
The market is young, but the technology underlying cryptocurrencies is here to stay. As we approach the end of 2017, let’s take a look at some of the top 10 cryptocurrency projects in terms of market capitalization.