Bitcoin Cash (BCH) emerged as a pivotal development in the cryptocurrency landscape, born from a hard fork of the original Bitcoin blockchain on August 1, 2017. This split was driven by a growing need to address Bitcoin’s scalability limitations, particularly its slow transaction speeds and rising fees. By increasing the block size limit, Bitcoin Cash aimed to restore the original vision of peer-to-peer electronic cash—fast, low-cost, and accessible to all.
Since its inception, BCH has evolved with protocol upgrades like SmartBCH and the Chiptokens CHIP proposal, enhancing its functionality for decentralized applications and smart contracts. While it shares core principles with Bitcoin—such as a 21 million supply cap and proof-of-work consensus—it has carved its own path in the digital currency ecosystem.
This article explores the key differences between Bitcoin Cash and Bitcoin, evaluates its pros and cons, and provides insights into how it functions in today’s crypto market.
What Is Bitcoin Cash?
Bitcoin Cash is a decentralized peer-to-peer electronic cash system designed for fast and affordable online payments. Like Bitcoin, it operates without central authority or third-party intermediaries. Transactions are verified by network nodes through cryptography and recorded on a public blockchain.
The creation of Bitcoin Cash stemmed from a hard fork of the Bitcoin blockchain—a fundamental change in protocol that resulted in two separate chains: BTC and BCH. This split was not led by a single individual but rather by a coalition of developers, miners, and community members who believed Bitcoin had strayed from its original purpose as a usable currency.
One of the most influential figures behind Bitcoin Cash is Amaury Séchet, the lead developer of Bitcoin ABC ( Adjustable Blocksize Cap ), one of the primary software implementations powering the BCH network. His contributions helped establish the technical foundation for larger block sizes and improved transaction throughput.
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Why Was Bitcoin Cash Created?
The primary motivation for creating Bitcoin Cash was scalability. As Bitcoin gained popularity, its 1MB block size limit began causing congestion. With only seven transactions processed per second, users faced delays and high fees during peak times.
Bitcoin Cash directly addressed this issue by increasing the block size to 8MB (later expanded further), allowing more transactions per block. This change significantly boosts transaction capacity—up to an average of 116 transactions per second—making BCH more suitable for everyday payments.
Additionally, developers optimized the transaction verification process by reducing the data required per transaction, further improving speed and efficiency.
Compared to traditional payment networks like Visa, which handles around 24,000 transactions per second, both BTC and BCH still have room to grow. However, BCH’s design makes it inherently more scalable than Bitcoin under current conditions.
How Does Bitcoin Cash Work?
Technically, Bitcoin Cash functions similarly to Bitcoin:
- It uses proof-of-work (PoW) consensus.
- Miners compete to solve cryptographic puzzles to validate transactions and add new blocks.
- Block rewards are given in BCH tokens.
- The total supply is capped at 21 million coins, identical to Bitcoin.
Despite these similarities, key technical upgrades differentiate BCH:
- Larger block sizes (initially 8MB, now dynamically adjustable up to 32MB).
- Lower transaction fees, often less than $0.01.
- Faster confirmation times due to reduced network congestion.
These features make Bitcoin Cash an attractive option for users prioritizing low-cost, high-speed transfers over pure store-of-value use cases.
Bitcoin Cash Roadmap and Protocol Upgrades
To fulfill its vision as a global peer-to-peer payment network, the Bitcoin Cash development team continues to implement strategic upgrades.
Key Goals of the BCH Roadmap:
- Scale capacity from 100 TPS to over 5 million TPS.
- Ensure transaction finality within three seconds.
- Support robust dApp and smart contract ecosystems.
Notable upgrades include:
- SmartBCH (2021): A sidechain enabling Ethereum-compatible smart contracts on the BCH network.
- Chiptokens CHIP (May 2023): An on-chain upgrade allowing UTXO-based smart contracts and decentralized applications directly on the main chain.
Jason Dreyzehner, a core BCH developer, stated that these advancements allow dApps on Bitcoin Cash to achieve over 1,000x greater efficiency in block validation compared to Ethereum.
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4 Key Differences Between Bitcoin Cash and Bitcoin
1. Block Size
Bitcoin maintains a 1MB block size (effectively ~4MB with SegWit), limiting transaction volume. In contrast, Bitcoin Cash supports blocks up to 32MB, enabling significantly higher throughput and faster processing of large transaction batches.
2. Transaction Fees
Due to larger blocks and lower congestion, BCH fees average $0.0019 per transaction**, while BTC fees often exceed **$0.39, spiking during high-demand periods.
3. Transaction Speed
With more space per block, Bitcoin Cash confirms transactions faster under normal conditions. While both networks target 10-minute block intervals, BCH experiences fewer delays due to lower competition for block space.
4. Hash Rate & Network Security
Bitcoin dominates in hash rate—the computational power securing its network—making it far more resistant to attacks. Bitcoin Cash has a smaller hash rate, which some experts argue makes it relatively less secure despite functional advantages.
Why Is Bitcoin Cash Cheaper Than Bitcoin?
As of mid-2025, Bitcoin Cash trades at a fraction of Bitcoin’s price—around $370 vs. over $60,000. Several factors contribute:
- Lower demand: BTC remains the most recognized and widely adopted cryptocurrency.
- Market perception: Many investors view BTC as “digital gold” and long-term store of value.
- Adoption gap: Fewer merchants accept BCH compared to BTC.
- Brand confusion: Similar names create uncertainty among new users.
Still, lower price doesn’t equate to lower utility. For frequent transactors and budget-conscious users, BCH offers real-world advantages.
Pros and Cons of Bitcoin Cash
✅ Advantages
- Fast and cheap transactions: Ideal for micropayments and daily use.
- High scalability: Larger blocks mean better performance during traffic spikes.
- Decentralized finance access: With SmartBCH and CHIP upgrades, BCH supports dApps and DeFi tools.
- Affordable entry point: At ~$370 per coin, it's accessible compared to full-Bitcoin ownership.
❌ Disadvantages
- Limited adoption: Not as widely accepted as BTC by exchanges or merchants.
- Lower security: Reduced hash rate increases vulnerability to potential 51% attacks.
- Brand recognition challenges: Often overshadowed by Bitcoin despite technical improvements.
- Environmental impact: Still uses energy-intensive proof-of-work mining.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin Cash a good investment?
A: It depends on your goals. If you're looking for fast, low-cost transactions or exposure to scalable blockchain tech, BCH may be valuable. However, it carries higher risk than BTC due to lower adoption and market dominance.
Q: Can Bitcoin Cash replace Bitcoin?
A: Unlikely. While BCH improves on transaction speed and cost, Bitcoin’s first-mover advantage, brand strength, and massive ecosystem give it enduring dominance.
Q: Does Bitcoin Cash have a future in DeFi?
A: Yes. With SmartBCH and Chiptokens CHIP enabling smart contracts, BCH is positioning itself as a viable DeFi platform with superior efficiency.
Q: Is mining Bitcoin Cash profitable?
A: Mining profitability depends on electricity costs, hardware efficiency, and market prices. While less competitive than BTC mining, it requires careful calculation before investment.
Q: How do I store Bitcoin Cash safely?
A: Use reputable non-custodial wallets like Electron Cash, Ledger, or Trezor to maintain full control over your private keys.
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