Differences between Bitcoin & Bitcoin Cash

As a beginner cryptocurrency trader based in Australia, it’s important to understand the difference between bitcoin and bitcoin cash. Both are popular cryptocurrencies, but they have some key differences that you should be aware of before you start trading.

First, let’s start with the basics. Both bitcoin and bitcoin cash are digital currencies that use blockchain technology to record transactions. Blockchain is a digital ledger that keeps track of all the transactions made with the cryptocurrency. It’s secure, transparent, and decentralised, meaning that it’s not controlled by any government or financial institution.

Now, let’s get into the differences between bitcoin and bitcoin cash.

One key difference is the size of their blockchains. Bitcoin’s blockchain is larger and more complex, which means that it can process more transactions per second. Bitcoin cash, on the other hand, has a smaller and simpler blockchain, which means that it can process fewer transactions per second.

Another difference is the way that they handle transactions. Bitcoin uses a process called mining to validate and record transactions on its blockchain. Miners use powerful computers to solve complex mathematical problems, and they are rewarded with bitcoin for their efforts. Bitcoin cash, on the other hand, uses a different process called proof-of-work to validate and record transactions.

A third difference is the way that they are used. Bitcoin is primarily used as a store of value, while bitcoin cash is used more as a means of exchange. This means that people are more likely to use bitcoin cash to buy goods and services, while they may hold onto bitcoin as an investment.

So, which one should you choose? It really depends on your goals and what you want to use the cryptocurrency for. If you’re looking for a long-term investment, you might want to consider bitcoin. It has a longer track record and is more established in the market. If you’re looking for a cryptocurrency to use for everyday purchases, you might want to consider bitcoin cash. It’s faster and more efficient for making transactions.

No matter which cryptocurrency you choose, it’s important to remember that you’ll need to pay taxes on any profits you make from trading. That’s where a crypto tax calculator like the ones offered by Crypto Tax Calculator Australia comes in handy. These tools can help you calculate how much you owe in taxes and make sure you’re in compliance with Australian tax laws.

If you’re new to cryptocurrency trading and you’re based in Australia, it’s also a good idea to use a crypto tax application like Crypto Tax Calculator Australia. This tool can help you track your trades and keep accurate records of your profits and losses. It can also help you file your taxes accurately and avoid any penalties or fines.

In conclusion, bitcoin and bitcoin cash are two popular cryptocurrencies that have some key differences. Bitcoin is larger and more complex, and it’s primarily used as a store of value. Bitcoin cash is smaller and simpler, and it’s used more as a means of exchange. Whether you choose bitcoin or bitcoin cash, it’s important to use a Crypto Tax Calculator Australia to stay in compliance with Australian tax laws and avoid any problems.