Bitcoin Cash (BCH) is a cryptocurrency altcoin designed as a faster, more cost-efficient alternative to Bitcoin, addressing scalability issues inherent in the original platform. It functions as a peer-to-peer electronic cash system optimized for quick verification of micropayments at high capacity with enhanced privacy.
Operating on a decentralized blockchain, Bitcoin Cash enables permissionless transactions through a public ledger without reliance on centralized entities like banks or governments.
The Origin of Bitcoin Cash
Bitcoin Cash emerged from a hard fork in Bitcoin’s blockchain in 2017 at block 478558. This split occurred due to disagreements within the Bitcoin community over scaling solutions. Advocates for Bitcoin Cash pushed for larger block sizes to improve transaction speed and reduce fees, while others favored off-chain solutions like the Lightning Network.
Key milestones:
- 2017 Fork: Increased block size from 1MB to 8MB.
- 2023 Upgrade: Introduced CashTokens (similar to Ethereum’s ERC-20) for smart contracts and dApp development.
👉 Discover how Bitcoin Cash compares to other altcoins
How Bitcoin Cash Works
Bitcoin Cash uses a proof-of-work consensus mechanism, where miners validate transactions by solving cryptographic puzzles. Its standout features include:
- 32MB Block Size: Processes ~100 transactions/second (vs. Bitcoin’s 7).
- Low Fees: Transactions cost less than $0.01.
- Fixed Supply: Capped at 21 million coins to ensure scarcity.
| Feature | Bitcoin Cash (BCH) | Bitcoin (BTC) |
|-------------------|-----------------------|-------------------|
| Block Size | 32MB | 1MB |
| TPS | 100 | 7 |
| Avg. Fee | <$0.01 | $1–$5 |
Uses for Bitcoin Cash
- Everyday Payments: Ideal for small purchases due to low fees.
- International Transfers: Avoids high cross-border fees.
- Privacy: Supports tools like CashShuffle for anonymized transactions.
- DeFi: CashTokens enable smart contracts and dApps.
👉 Explore Bitcoin Cash wallets
Bitcoin vs. Bitcoin Cash
Similarities:
- Decentralized, PoW-based.
- 21M coin supply cap.
Differences:
- Speed: BCH processes transactions faster.
- Cost: BCH fees are negligible.
- Adoption: BTC remains the dominant store of value.
Buying Bitcoin Cash
- Exchanges: Purchase BCH on platforms like Coinbase or Binance.
- P2P Marketplaces: Trade directly with other users.
- Wallets: Store BCH in hardware (e.g., Ledger) or software wallets (e.g., Trust Wallet).
FAQs
Q: Is Bitcoin Cash a good investment?
A: It’s high-risk like all cryptos but offers utility for fast, low-cost transactions.
Q: Can I use Bitcoin Cash for online shopping?
A: Yes! Many merchants accept BCH via payment processors like BitPay.
Q: How does Bitcoin Cash enhance privacy?
A: Tools like CashFusion obfuscate transaction trails.
Bitcoin Cash combines transactional efficiency with decentralized principles, making it a practical choice for microtransactions and everyday crypto use.