Bitcoin Cash (BCH) is a decentralized digital currency that emerged from a hard fork of the original Bitcoin (BTC) blockchain. Designed to improve transaction speed and reduce fees, BCH aims to fulfill Bitcoin’s original vision as a peer-to-peer electronic cash system. In this comprehensive guide, we’ll explore what Bitcoin Cash is, how it differs from Bitcoin, its market performance, investment risks, and more—helping you gain a well-rounded understanding of this prominent cryptocurrency.
What Is Bitcoin Cash (BCH)?
| Currency Code | BCH |
| Founder | Result of Bitcoin hard fork (no single founder) |
| Launch Date | August 1, 2017 |
| Max Supply | 21 million coins |
| Circulating Supply* | 19.8 million |
| Market Cap* | $1.1 billion |
| Official Website | bch.info |
*Data sourced from CoinMarketCap as of December 9, 2024
Bitcoin Cash (BCH) is a cryptocurrency born out of a hard fork in the Bitcoin blockchain. The split occurred due to disagreements within the Bitcoin community about how to scale the network to support more transactions. While Bitcoin maintained a 1MB block size limit, Bitcoin Cash increased it significantly—first to 8MB and later to 32MB—to allow for faster and cheaper transactions.
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What Is a Hard Fork?
A hard fork happens when a blockchain splits into two separate chains, each following different protocol rules. After the split, both chains share the same transaction history up to the fork point but operate independently afterward.
Think of it like a family splitting over differing beliefs—genetically related, but now living separate lives. In the case of BCH, the split was driven by a belief that Bitcoin should prioritize fast, low-cost payments rather than act solely as digital gold.
This divergence led to the creation of Bitcoin Cash, which focuses on being practical for everyday transactions, unlike Bitcoin, which has increasingly become a store of value.
What Can You Do With Bitcoin Cash?
Bitcoin Cash is engineered for efficiency. With faster confirmation times and lower transaction fees compared to BTC, BCH is better suited for daily use—such as buying coffee, paying for services, or sending money across borders instantly.
You can send BCH to anyone globally, and recipients can either hold it, spend it directly, or convert it into local currency through supported platforms. Its low fees make micropayments feasible—something often impractical on the Bitcoin network during peak congestion.
However, despite its technical advantages, Bitcoin Cash faces challenges in adoption and market perception.
Market Insight: The Identity Challenge of BCH
Launched in 2017 during a bull market, Bitcoin Cash aimed to be a scalable alternative to Bitcoin. However, it failed to gain widespread consensus among developers and miners. Over time, newer blockchains like Ethereum, Solana, and Litecoin introduced even faster and more flexible solutions for payments and smart contracts.Today, BCH occupies a middle ground—more established than obscure altcoins but less dominant than BTC or ETH. While still active and functional, its real-world utility lags behind more innovative ecosystems.
Bitcoin Cash vs. Bitcoin: Key Differences
Though both use the same proof-of-work (PoW) consensus mechanism and SHA-256 hashing algorithm, several critical distinctions set them apart:
- Block Size: BCH blocks can reach up to 32MB, while BTC remains capped at 1MB.
- Transaction Speed: BCH handles over 200 transactions per second, compared to BTC’s ~7 TPS.
- Use Case Focus: BTC is seen as "digital gold"—a long-term store of value; BCH aims to be “digital cash” for daily spending.
- Market Recognition: Despite technical improvements, BTC maintains far greater institutional and public trust.
To put this in perspective: Visa processes around 65,000 transactions per second. While neither BTC nor BCH comes close, BCH’s architecture brings it significantly closer than Bitcoin.
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How Does BCH Compare to Other Bitcoin Forks?
Bitcoin has undergone numerous forks since its inception. Among the most notable are:
- Bitcoin (BTC): Original chain with 1MB block size.
- Bitcoin Cash (BCH): Forked in August 2017 with 32MB blocks.
- Bitcoin SV (BSV): Split from BCH in November 2018, increasing block size to 128MB.
Timeline of Major BCH Forks:
- August 2017: BTC hard forks → creates BCH
- November 2018: BCH splits into BCHABC (now BCH) and BSV
- November 2020: Another split results in BCHN (adopted as mainline BCH) and BCHA, later rebranded as XEC in July 2021
While BSV promotes massive scalability, its market presence remains limited. As of early 2025, BSV trades around $55 with modest daily volume—pale in comparison to BTC’s multi-billion dollar turnover.
Meanwhile, BCHA evolved into XEC through a 1:1,000,000 redenomination to facilitate microtransactions. Though it saw short-term price spikes—from $0.00002 to $0.0003—its current value hovers near $0.000035 with relatively low trading activity.
Today, the three main branches—BTC, BCH, and BSV—represent varying philosophies on blockchain scalability and decentralization.
Bitcoin Cash Price Trends and Market Performance
As of late 2024, Bitcoin Cash holds a market cap of approximately $1.1 billion. While it experienced strong momentum post-fork—reaching a BTC/BCH exchange ratio of 0.27 in late 2017—the momentum faded over time.
The BCH/BTC trading pair has declined dramatically:
- From ~0.20 in 2017
- Down to ~0.05 by 2019
- Further dropping to around 0.0045 by 2024
This means one BCH now buys less than 0.5% of a BTC—down nearly 98% from its initial post-fork value.
For investors hoping that BCH would track or complement BTC’s growth, the data shows otherwise. BCH has consistently underperformed BTC both in relative and absolute terms.
Is Investing in Bitcoin Cash Risky?
Yes—like all cryptocurrencies, investing in BCH carries substantial risk. Below are three primary concerns:
1. Lower Liquidity and Market Dominance
Despite being cheaper per coin than BTC, BCH lacks comparable liquidity. Lower trading volume makes large trades harder without impacting price, increasing slippage risk. Reduced miner incentives also threaten long-term network sustainability.
2. Weaker Network Security
BCH offers lower block rewards in dollar terms than BTC, leading miners to allocate less computational power (hashrate) to the network. A smaller hashrate means lower resistance to potential 51% attacks—where malicious actors could theoretically manipulate transaction records.
While no major attack has occurred yet, the risk is higher than on the more robust Bitcoin network.
3. General Crypto Market Volatility
Cryptocurrencies are highly speculative assets influenced by regulatory news, macroeconomic shifts, and investor sentiment. BCH is no exception—and may be even more volatile due to lower market depth.
Always conduct thorough research before investing. Never invest more than you can afford to lose.
How to Buy Bitcoin Cash
There are two primary ways to gain exposure to BCH:
1. Through Cryptocurrency Exchanges
Buying BCH directly via reputable exchanges is the most straightforward method for beginners. Platforms like Binance offer spot trading for BCH/USD or BCH/USDT pairs.
Ensure you choose an exchange with strong security measures, high liquidity, and regulatory compliance.
2. Via CFDs (Contract for Difference)
Some forex brokers offer CFDs on Bitcoin Cash. These derivatives let you speculate on price movements without owning the actual asset—ideal for short-term traders seeking leverage.
However, CFDs come with heightened risk due to margin requirements and potential losses exceeding initial deposits.
Quick Summary: Key Facts About Bitcoin Cash
- Bitcoin Cash (BCH) resulted from a hard fork of Bitcoin in August 2017.
- It features larger block sizes (up to 32MB), enabling faster and cheaper transactions.
- Intended for everyday use as digital cash, though adoption remains limited.
- Subsequent forks created BSV and XEC.
- BCH has underperformed BTC significantly since launch.
- Lower liquidity and network security compared to Bitcoin raise investment concerns.
Note: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry high risk—always perform independent research before making any decisions.
Frequently Asked Questions (FAQ)
Q: Why was Bitcoin Cash created?
A: Bitcoin Cash was created to solve Bitcoin’s scalability issues. By increasing block size from 1MB to 32MB, it allows more transactions per block, reducing fees and confirmation times—making it more practical for daily use.
Q: Can I mine Bitcoin Cash?
A: Yes. Like Bitcoin, BCH uses proof-of-work mining with SHA-256 algorithm compatibility. However, profitability depends on electricity costs, hardware efficiency, and current network difficulty.
Q: Is Bitcoin Cash safer than Bitcoin?
A: No. Due to lower hashrate and fewer miners securing the network, BCH is more vulnerable to potential attacks compared to BTC’s highly decentralized and secure network.
Q: Does Bitcoin Cash support smart contracts?
A: Not natively like Ethereum. While some projects build dApps on BCH using sidechains or scripting extensions, its capabilities are far more limited compared to modern smart contract platforms.
Q: Will Bitcoin Cash ever surpass Bitcoin?
A: Unlikely based on current trends. BTC dominates in market cap, adoption, developer activity, and institutional interest. BCH plays a niche role but lacks momentum to overtake its predecessor.
Q: Where can I spend Bitcoin Cash?
A: Some online retailers, gaming sites, and donation platforms accept BCH. However, acceptance is much lower than BTC or stablecoins like USDT.
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