Bitcoin Cash (BCH) is a cryptocurrency that emerged from a hard fork of the original Bitcoin (BTC) blockchain. Designed to address scalability issues, BCH increases block size from BTC's 1MB to 8MB (later upgraded to 32MB), enabling faster transactions and lower fees. While sharing Bitcoin's core features, BCH positions itself as a practical payment solution rather than just a store of value.
What Is Bitcoin Cash (BCH)?
| Key Metrics | Details |
|---|---|
| Symbol | BCH |
| Launch Date | August 1, 2017 |
| Max Supply | 21 million coins |
| Circulating Supply | 19.8 million (as of 2024) |
| Block Size | 32MB |
| Transactions/Second | 200+ |
| Consensus Mechanism | Proof-of-Work (PoW) |
👉 Discover how BCH compares to other top cryptocurrencies
The Hard Fork Explained
A hard fork occurs when a blockchain splits into two separate chains due to disagreements over protocol upgrades. BCH was created when Bitcoin developers and miners sought to improve transaction throughput by increasing block size. This split preserved Bitcoin's history but introduced technical divergences moving forward.
Use Cases for Bitcoin Cash
BCH excels in scenarios requiring:
- Daily transactions (e.g., retail purchases, remittances)
- Microtransactions due to low fees (~$0.01 per transfer)
- Cross-border payments with faster confirmations than BTC
Pro Tip: While BCH aimed to solve Bitcoin's scalability problems, newer blockchains like Ethereum and Solana now offer even faster transaction speeds and smart contract capabilities.
Bitcoin Cash vs. Bitcoin: Key Differences
| Feature | Bitcoin Cash (BCH) | Bitcoin (BTC) |
|---|---|---|
| Block Size | 32MB | 1MB |
| Avg. Transaction Fee | $0.01–$0.10 | $1–$30 |
| Transactions/Second | 200+ | 7 |
| Market Dominance | ~0.5% | ~40% |
👉 Compare trading pairs for BCH/BTC
The Bitcoin Fork Family Tree
- 2017: BTC → BCH (32MB blocks)
2018: BCH splits into:
- BCH ABC (retained as BCH)
- Bitcoin SV (BSV, 128MB blocks)
- 2020: Further BCH splits created XEC (formerly BCHA)
Current major forks: BTC (store of value), BCH (payments), BSV (large-block purist)
Price Performance Analysis
- BCH peaked at $3,785 in December 2017 (BTC's bull market)
- As of 2024, BCH trades at ~$250, significantly underperforming BTC
- BCH/BTC ratio declined from 0.20 at launch to 0.006 (98% drop)
Investment Risks to Consider
- Liquidity Risk: Lower trading volume than BTC (~$300M daily vs. $20B+)
- Security: Smaller mining network makes 51% attacks theoretically easier
- Regulatory Uncertainty: Potential government crackdowns on crypto payments
- Competition: Outpaced by newer Layer 1 chains (e.g., Solana, Avalanche)
How to Buy Bitcoin Cash
Recommended Methods:
Cryptocurrency Exchanges:
- Binance, OKX, or Coinbase (spot trading)
- Step-by-step exchange guide
CFD Trading (for short-term speculation):
- Available through Forex brokers like eToro
FAQs About Bitcoin Cash
Q: Is Bitcoin Cash better than Bitcoin?
A: It depends on use cases. BCH offers cheaper/faster payments, but BTC has stronger network effects and adoption as "digital gold."
Q: Can Bitcoin Cash replace Bitcoin?
A: Unlikely. BTC's first-mover advantage and institutional adoption give it enduring dominance despite technical limitations.
Q: Where can I spend BCH?
A: Major platforms accepting BCH include:
- Purse.io (eCommerce)
- TravelByBit (travel bookings)
- Local businesses via BitPay
Q: What's the future of BCH?
A: While still actively developed, BCH faces challenges from more scalable blockchains. Its long-term viability depends on merchant adoption.
Key Takeaways
- BCH is a Bitcoin fork optimized for payments via larger blocks (32MB)
- Transactions are faster/cheaper than BTC but with lower security guarantees
- Price has significantly underperformed Bitcoin since 2017
- Remains a niche option among payment-focused cryptocurrencies
Disclaimer: Cryptocurrencies involve high risk. This content is educational only—always conduct independent research before investing.
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