Bitcoin Cash (BCH) is a prominent cryptocurrency that emerged in 2017 as a hard fork of Bitcoin, designed to address growing concerns around scalability and transaction efficiency. With its larger block size and lower fees, Bitcoin Cash aims to fulfill the original vision of Bitcoin as a peer-to-peer electronic cash system—usable for everyday transactions.
Whether you're new to digital currencies or exploring alternatives to Bitcoin, understanding Bitcoin Cash’s technology, ecosystem, and market behavior can help inform your decisions in the evolving crypto landscape.
👉 Discover how Bitcoin Cash enables fast, low-cost global payments with real-world utility.
What Is Bitcoin Cash?
Bitcoin Cash is a decentralized digital currency built to support fast, low-cost transactions on a public blockchain. It was created on August 1, 2017, when a group of developers, miners, and users split from the Bitcoin network due to disagreements over how to scale the blockchain.
The core idea behind Bitcoin Cash was simple: increase the block size limit to allow more transactions per block, thereby reducing congestion and keeping fees low. This adjustment makes it more practical for daily use—like buying coffee or sending cross-border remittances—compared to Bitcoin, which has higher fees during peak usage times.
Unlike stablecoins or tokens built on other platforms, Bitcoin Cash operates on its own independent blockchain and shares many foundational principles with Bitcoin, including scarcity (capped supply of 21 million coins) and decentralization.
How Does Bitcoin Cash Work?
Like Bitcoin, Bitcoin Cash uses a Proof-of-Work (PoW) consensus mechanism. Miners compete to solve complex cryptographic puzzles using computational power, and the first to solve it adds a new block of transactions to the blockchain. In return, they are rewarded with newly minted BCH and transaction fees.
What sets Bitcoin Cash apart is its larger block size—initially set at 8 MB and later increased up to 32 MB in some implementations. This allows thousands of transactions to be processed per block, significantly improving throughput compared to Bitcoin’s 1–4 MB blocks.
This scalability improvement leads to:
- Faster transaction confirmations
- Lower fees (often less than $0.01)
- Reduced network congestion during high-demand periods
Because it uses the SHA-256 hashing algorithm, Bitcoin Cash is compatible with the same mining hardware used for Bitcoin, enabling shared security infrastructure and miner participation across both networks.
Key Token Details
Understanding the fundamental attributes of Bitcoin Cash helps clarify its role in the broader cryptocurrency ecosystem:
- Ticker Symbol: BCH
- Category: Digital Currency / Medium of Exchange
- Blockchain: Bitcoin Cash
- Consensus Mechanism: Proof-of-Work (SHA-256)
- Maximum Supply: 21 million BCH
- Launch Year: 2017
These characteristics position Bitcoin Cash as a deflationary asset with long-term value storage potential while emphasizing usability as a payment method—an important distinction from projects focused solely on speculation or smart contract functionality.
The Technology Behind Bitcoin Cash
Bitcoin Cash builds upon the original Bitcoin codebase but introduces critical modifications aimed at enhancing performance and usability. The most significant change is the increased block size, which directly impacts how many transactions can be included in each block.
Additionally, Bitcoin Cash deliberately chose not to adopt Segregated Witness (SegWit)—a protocol upgrade implemented by Bitcoin that separates signature data from transaction data to free up space. Instead, Bitcoin Cash developers believed that increasing block size was a more straightforward and effective solution for scaling.
Other technical improvements include:
- Replay protection: Ensures transactions on one chain (e.g., Bitcoin) cannot be duplicated on the other (Bitcoin Cash)
- Adjustable difficulty algorithms: Help maintain consistent block times even if mining power fluctuates
- Canonical Transaction Ordering (CTOR): Improves efficiency by standardizing the order of transactions within a block
These upgrades reflect a philosophy centered on simplicity, predictability, and on-chain scaling—making Bitcoin Cash a compelling option for users prioritizing speed and affordability.
The Bitcoin Cash Ecosystem
Since its inception, Bitcoin Cash has cultivated a vibrant ecosystem supported by developers, businesses, and users worldwide. Today, it is accepted by numerous merchants, integrated into major wallets, and traded across top-tier cryptocurrency exchanges.
Wallet Support
A wide range of non-custodial and custodial wallets support BCH, including hardware wallets like Ledger and Trezor, mobile apps like Edge and Exodus, and web-based solutions.
Merchant Adoption
From online retailers to freelance platforms, many businesses accept Bitcoin Cash due to its low fees and fast settlement times. Some point-of-sale systems even enable instant BCH payments in physical stores.
Development Projects
Innovative applications have been built on or around the Bitcoin Cash network, such as:
- Simple Ledger Protocol (SLP): Enables creation of custom tokens and NFTs on BCH
- Cashscript: A high-level programming language for writing smart contracts
- HandCash and Money Button: User-friendly apps simplifying peer-to-peer payments
This growing infrastructure underscores Bitcoin Cash’s potential beyond just being a payment tool—it's becoming a platform for financial innovation.
Who Created Bitcoin Chain?
Bitcoin Cash does not have a single founder. It was the result of a community-driven hard fork involving developers, miners, exchange operators, and users who shared a belief that Bitcoin should remain a peer-to-peer electronic cash system.
Key figures in the early advocacy for larger blocks included:
- Roger Ver – Early Bitcoin investor and prominent BCH supporter
- Jihan Wu – Co-founder of Bitmain, a major mining company
- Amaury Sechet – Lead developer of the Bitcoin ABC implementation
While these individuals played influential roles, the network remains decentralized, with no central authority controlling its development or governance.
Market Performance Overview
As of recent data:
- Price 24 hours ago: €426.62
- 24-hour high: €431.47
- 24-hour low: €414.01
- 24-hour change: -€11.60
Bitcoin Cash is known for its price volatility—a common trait among cryptocurrencies. Its value responds to market sentiment, macroeconomic trends, regulatory developments, and adoption milestones.
Investors should approach BCH with caution, recognizing that while it offers utility and growth potential, it also carries risks inherent to digital assets.
👉 Stay updated on real-time price movements and trading opportunities across major cryptocurrencies.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin Cash the same as Bitcoin?
A: No. While both share similar origins and technology, Bitcoin Cash has larger blocks (up to 32 MB), lower fees, and faster transaction processing compared to Bitcoin.
Q: Can I use Bitcoin Cash for everyday purchases?
A: Yes. Many online and brick-and-mortar merchants accept BCH for goods and services due to its low fees and quick confirmation times.
Q: How is Bitcoin Cash secured?
A: Through Proof-of-Work mining using the SHA-256 algorithm, ensuring network integrity and resistance to attacks.
Q: What is the maximum supply of BCH?
A: Like Bitcoin, Bitcoin Cash has a capped supply of 21 million coins, making it a deflationary asset over time.
Q: Is Bitcoin Cash environmentally friendly?
A: Like all PoW blockchains, it consumes energy. However, increasing use of renewable energy in mining is helping reduce its environmental footprint.
Q: Where can I store my Bitcoin Cash safely?
A: You can store BCH in hardware wallets (e.g., Ledger), software wallets (e.g., Exodus), or reputable exchange wallets—always prioritize security best practices.
Final Thoughts
Bitcoin Cash represents a bold attempt to return to Satoshi Nakamoto’s original vision of a decentralized digital cash system. By prioritizing large blocks, low fees, and fast confirmations, it offers a practical alternative for users seeking efficient peer-to-peer transactions.
While debates about scalability continue across the crypto space, Bitcoin Cash remains a significant player with real-world utility and an active development community. Whether you're interested in using it for payments or exploring its investment potential, staying informed is key.
As always, conduct thorough research before engaging with any cryptocurrency—and consider secure platforms to manage your digital assets wisely.