Bitcoin Cash price, charts, marketcap and other stats

Bitcoin Cash (BCH) is a cryptocurrency that was created as a fork of Bitcoin in 2017 to address scalability issues associated with Bitcoin. While Bitcoin was initially envisioned as a peer-to-peer electronic cash system, its popularity and network limitations led to slower transactions and higher fees. Bitcoin Cash was developed to offer faster, more affordable transactions, making it a more practical option for daily payments and smaller transactions. With increased block sizes, Bitcoin Cash aims to provide a scalable and efficient alternative for payments while staying true to the original vision of digital cash.

How Does Bitcoin Cash Work?

Bitcoin Cash functions similarly to Bitcoin but includes modifications that enable it to handle a larger volume of transactions. It uses a larger block size than Bitcoin, which allows more transactions to be processed per block. Bitcoin Cash operates on a Proof-of-Work (PoW) consensus mechanism, where miners compete to validate transactions and add them to the blockchain. Like Bitcoin, BCH transactions are recorded on a public ledger, and new blocks are added approximately every 10 minutes. However, due to its larger block size, Bitcoin Cash can process transactions faster and with lower fees, making it better suited for day-to-day transactions.

Bitcoin Cash Founder and History

Bitcoin Cash was created in August 2017 through a “hard fork” from the original Bitcoin blockchain. A group of developers and miners, led by notable figures like Roger Ver, felt that Bitcoin’s block size limit of 1MB was too restrictive, causing slow transaction times and high fees as demand grew. They proposed increasing the block size to 8MB to address these issues, but the proposal was met with resistance within the Bitcoin community. This disagreement ultimately led to the creation of Bitcoin Cash, which launched with the larger block size and a focus on scalability. Since then, Bitcoin Cash has undergone additional upgrades, including an increase in block size to 32MB, allowing it to handle even more transactions per second.

Bitcoin Cash vs. Bitcoin

Bitcoin Cash and Bitcoin share many similarities but differ in critical ways:

• Block Size: Bitcoin Cash initially adopted an 8MB block size, compared to Bitcoin’s 1MB block, and has since expanded to 32MB. This increase enables more transactions per block, leading to faster processing and lower fees.


• Transaction Fees: Due to its larger block size, Bitcoin Cash transactions typically have lower fees than Bitcoin, making it more suitable for microtransactions.


• Vision: Bitcoin is increasingly viewed as a “store of value” or “digital gold,” whereas Bitcoin Cash is positioned as “digital cash” for everyday transactions.


• Community and Development: While Bitcoin’s development community is more conservative and focused on security, Bitcoin Cash’s community is more open to changes aimed at improving transaction speeds and scalability.

Bitcoin Cash Blockchain Explained

The Bitcoin Cash blockchain operates on a similar framework to Bitcoin’s, with some enhancements. Bitcoin Cash blocks are larger, allowing more transactions to fit into each block. The Bitcoin Cash blockchain also uses the same Proof-of-Work algorithm (SHA-256) as Bitcoin, meaning Bitcoin miners can mine both Bitcoin and Bitcoin Cash. The larger block size allows Bitcoin Cash to process a higher volume of transactions, positioning it as a more practical solution for payment-based applications.

• Proof of Work (PoW): Bitcoin Cash miners solve complex mathematical puzzles to validate transactions, securing the network and receiving rewards in BCH.


• Difficulty Adjustment Algorithm (DAA): To maintain block production time, Bitcoin Cash has an adjusted difficulty algorithm that recalibrates mining difficulty based on network conditions, helping to keep transactions consistent even when the number of miners fluctuates.

BCH Transaction Speed and Scalability

Bitcoin Cash’s larger block size allows it to process more transactions per second (TPS) than Bitcoin. While Bitcoin can handle around 7 TPS, Bitcoin Cash’s expanded block size has allowed it to achieve significantly higher throughput, often processing around 100 transactions per second or more depending on network demand. This capacity makes Bitcoin Cash better suited for commercial transactions, especially for retailers or businesses that need a quick and reliable payment method.

BCH Use Cases and Utility

Bitcoin Cash was designed to be used as a digital currency with practical applications, and its low fees make it useful for several purposes:

• Everyday Transactions: BCH can be used for daily purchases at merchants accepting cryptocurrency, with low transaction fees making it viable for small payments.


• Peer-to-Peer Transfers: Individuals can use Bitcoin Cash to send and receive funds quickly and affordably, even for international transfers.


• Merchant Adoption: Many businesses accept BCH payments, particularly in areas where fast and low-cost transactions are essential.


• Micropayments: With its lower transaction fees, Bitcoin Cash is suited for micropayments, such as online tipping or small digital purchases.


• Remittances: Bitcoin Cash is commonly used for remittance services, where speed and cost are critical, especially in areas with limited access to banking.

Bitcoin Cash Fork from Bitcoin

The creation of Bitcoin Cash in 2017 was the result of a fundamental disagreement within the Bitcoin community regarding scalability. Bitcoin developers proposed “SegWit” (Segregated Witness), which modifies how data is stored in each block to increase capacity. However, some members of the community, advocating for larger block sizes, felt that SegWit wasn’t enough to handle Bitcoin’s growing transaction volume. This division led to the hard fork on August 1, 2017, creating Bitcoin Cash as a separate blockchain. Although Bitcoin Cash and Bitcoin share a common origin, the two networks have diverged in terms of development priorities, with Bitcoin Cash emphasizing larger blocks and faster transactions.