Bitcoin Cash (BCH) is a prominent cryptocurrency that emerged from a hard fork of the original Bitcoin (BTC) blockchain. Designed to address Bitcoin’s scalability limitations, Bitcoin Cash offers faster transaction speeds and lower fees, positioning itself as a more practical digital currency for everyday use. This article dives into the fundamentals of Bitcoin Cash, its differences from Bitcoin, market performance, investment considerations, and more—helping you understand whether BCH holds value in today’s evolving crypto landscape.
Note: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry high risk. Always conduct independent research before making any investment decisions.
What Is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a decentralized digital currency created through a hard fork of the Bitcoin blockchain on August 1, 2017. It was developed to improve upon Bitcoin’s core functionality by increasing block size, enabling faster and cheaper transactions.
| Attribute | Details |
|---|---|
| Currency Code | BCH |
| Origin | Hard fork of Bitcoin (BTC) |
| Launch Date | August 1, 2017 |
| Max Supply | 21 million coins |
| Circulating Supply | ~19.8 million (as of late 2024) |
| Market Cap | ~$1.1 billion (data as of Dec 2024) |
👉 Discover how blockchain networks like Bitcoin Cash are transforming digital finance.
Understanding Hard Forks
A hard fork occurs when a blockchain splits into two separate chains due to disagreements in consensus rules among developers, miners, or users. After the split, both chains operate independently with their own transaction history moving forward.
Think of it like a family dividing due to differing beliefs—both branches share the same roots but follow different paths. In this case, Bitcoin Cash branched off to prioritize on-chain scalability, while Bitcoin maintained a focus on decentralization and security.
The primary motivation behind BCH’s creation was Bitcoin’s growing congestion. With a 1MB block size limit, BTC could handle only about 7 transactions per second (TPS), leading to slow confirmations and high fees during peak usage. Bitcoin Cash increased its block size to 8MB initially, later expanding to 32MB, allowing it to process over 200 TPS.
This makes BCH better suited for daily transactions, such as buying coffee or sending money across borders quickly and affordably.
Core Use Cases of Bitcoin Cash
Bitcoin Cash aims to fulfill the original vision of Bitcoin—as a peer-to-peer electronic cash system. Here's how it stands out:
- ✅ Fast Transactions: Larger blocks mean quicker processing times.
- ✅ Low Fees: Transaction costs are significantly lower than BTC.
- ✅ Global Payments: Send funds instantly to anyone worldwide.
- ✅ Micropayments: Ideal for small-value transfers due to low fees.
For example, sending $10 worth of BCH to a friend overseas might cost just a few cents and settle within minutes—making it far more efficient than traditional banking or even BTC for routine spending.
However, despite these advantages, BCH faces challenges in widespread adoption compared to BTC and newer blockchains.
Bitcoin Cash vs. Bitcoin: Key Differences
While both BCH and BTC use the same underlying technology—Proof-of-Work (PoW) and SHA-256 hashing algorithm—they differ significantly in design philosophy and performance.
Side-by-Side Comparison
Block Size:
- BCH: Up to 32 MB
- BTC: Limited to 1 MB
Transaction Speed:
- BCH: Can handle over 200 TPS
- BTC: Averages around 7 TPS
Fees:
- BCH: Typically under $0.01 per transaction
- BTC: Can exceed $10 during network congestion
Consensus Focus:
- BCH: Prioritizes on-chain scaling
- BTC: Relies on off-chain solutions like the Lightning Network
Market Perception:
- BTC is widely seen as “digital gold” — a store of value
- BCH aims to be “digital cash” — a medium of exchange
Despite these technical improvements, BTC remains dominant in terms of market capitalization, user base, and institutional adoption.
How Does Bitcoin Cash Compare to Other Bitcoin Forks?
Bitcoin has undergone numerous forks since its inception, but few have gained lasting traction. Among them, three major chains stand out:
- Bitcoin (BTC) – The original chain; block size: 1MB
- Bitcoin Cash (BCH) – Forked in 2017; block size: 32MB
- Bitcoin SV (BSV) – Forked from BCH in 2018; block size: up to 128MB
In November 2018, ideological disputes within the BCH community led to another split:
- BCHABC (now known as BCH) – Maintained by nodes supporting larger blocks with moderate growth
- BCHSV (now BSV) – Advocated for massive blocks and enterprise use cases
Later, in 2020, another hard fork resulted in:
- BCHN – Became the dominant version adopted by most exchanges
- BCHA – Later rebranded as eCash (XEC) in 2021 with a 1:1,000,000 reverse split for easier microtransactions
Today, BTC dominates the ecosystem, followed distantly by BCH and BSV in terms of market cap and trading volume.
Bitcoin Cash Price Trends and Market Performance
As of late 2024, Bitcoin Cash holds a market cap of approximately $1.1 billion, placing it outside the top 20 cryptocurrencies. Its price performance has lagged behind Bitcoin significantly since the fork.
BCH vs. BTC Price Ratio (BCH/BTC)
When BCH first launched in 2017, the exchange rate was around 0.20 BTC per BCH. By early 2025, that ratio had dropped to roughly 0.0045, representing a decline of nearly 98%.
This indicates that:
- BCH has failed to maintain parity with BTC
- Investor sentiment favors BTC over its forks
- BCH’s utility hasn’t translated into strong market demand
While BCH experienced short-term rallies during bull markets, it has consistently underperformed BTC in both absolute returns and long-term growth.
Is Investing in Bitcoin Cash Risky?
Yes—like all cryptocurrencies, investing in Bitcoin Cash carries substantial risks. Below are key concerns:
1. Lower Liquidity and Market Dominance
Compared to Bitcoin, BCH has significantly less trading volume and exchange support. Lower liquidity means:
- Wider bid-ask spreads
- Higher price volatility
- Difficulty executing large trades without impacting price
This can deter institutional investors and reduce long-term stability.
2. Reduced Network Security
Security in PoW blockchains depends on computational power (hashrate). Since BTC commands the majority of global mining power, BCH is more vulnerable to potential attacks, such as:
- 51% attacks, where malicious actors gain control over transaction validation
- Lower mining rewards reduce miner incentives to secure the network
While no major attack has succeeded on BCH yet, the risk remains higher than on BTC.
3. Competitive Pressure from Newer Blockchains
Many modern blockchains—like Solana, Cardano, and Litecoin—offer faster speeds and smart contract capabilities that BCH lacks. As a result:
- Developers prefer building on more versatile platforms
- Merchants may opt for alternatives with broader tooling and ecosystem support
👉 Explore secure platforms where you can track and manage digital assets like Bitcoin Cash.
How to Buy Bitcoin Cash
There are several ways to acquire BCH:
Option 1: Cryptocurrency Exchanges
Buying directly via reputable exchanges is the most common method. Platforms like OKX allow users to purchase BCH using fiat currency (e.g., USD) or trade other cryptocurrencies for it.
Steps:
- Create an account on a trusted exchange
- Complete KYC verification
- Deposit funds or trade existing crypto
- Purchase BCH instantly
Option 2: CFDs (Contracts for Difference)
Some forex brokers offer CFDs on BCH, allowing traders to speculate on price movements without owning the actual asset. This suits short-term traders but comes with leverage risks.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin Cash the same as Bitcoin?
A: No. While they share origins, Bitcoin Cash has larger blocks and lower fees, aiming for daily use rather than value storage.
Q: Can I use Bitcoin Cash for purchases?
A: Yes. Some merchants accept BCH for goods and services, though adoption is limited compared to traditional payment methods.
Q: Why did Bitcoin Cash fork from Bitcoin?
A: To solve scalability issues—Bitcoin’s small block size caused slow transactions and high fees during high demand.
Q: Is Bitcoin Cash a good investment?
A: It depends on your goals. BCH offers utility but lags behind BTC in adoption and price growth. High risk applies.
Q: What happened to BCHA and BSV?
A: BCHA became eCash (XEC) after a rebranding; BSV exists as a separate chain focused on large-scale data storage.
Q: Does Bitcoin Cash support smart contracts?
A: Not natively like Ethereum, though experimental upgrades aim to add limited scripting functionality.
Final Thoughts: Where Does Bitcoin Cash Stand Today?
Bitcoin Cash remains one of the most notable altcoins born from the original Bitcoin network. While it delivers on faster transactions and lower fees, it struggles with adoption, security concerns, and competition from newer technologies.
Its role as “digital cash” is noble—but in practice, it occupies a narrow niche between BTC’s dominance and the rise of more advanced blockchains.
For users seeking fast, low-cost payments, BCH still holds relevance. But for long-term investors, careful evaluation is essential given its declining market share relative to BTC.
👉 Stay ahead in crypto by monitoring real-time market data and trends on trusted platforms.
Remember: Never invest more than you can afford to lose. Always verify information from multiple sources before making financial decisions.