RxJava 1.0 versus RxJava 2.0 - which one do I use?

As stated earlier, you are encouraged to use RxJava 2.0 if you can. It will continue to grow and receive new features, while RxJava 1.0 will be maintained for bug fixes. However, there are other considerations that may lead you to use RxJava 1.0.

If you inherit a project that is already using RxJava 1.0, you will likely continue using that until it becomes feasible to refactor to 2.0. You can also check out David Akarnokd's RxJava2Interop project (https://github.com/akarnokd/RxJava2Interop), which converts Rx types from RxJava 1.0 to RxJava 2.0 and vice versa. After you finish this book, you may consider using this library to leverage RxJava 2.0 even if you have the RxJava 1.0 legacy code.

In RxJava, there are several libraries to make several Java APIs reactive and plug into RxJava seamlessly. Just to name a few, these libraries include RxJava-JDBC, RxAndroid, RxJava-Extras, RxNetty, and RxJavaFX. At the time of writing this, only RxAndroid and RxJavaFX have been fully ported to RxJava 2.0 (although many other libraries are following). By the time you are reading this, all major RxJava extension libraries will hopefully be ported to RxJava 2.0.

You will also want to prefer RxJava 2.0 because it was built on much of the hindsight and wisdom gained from RxJava 1.0. It has better performance, simpler APIs, a cleaner approach to backpressure, and a bit more safety when hacking together your own operators.