Bitcoin Cash Explained: What You Need to Know
Bitcoin Cash (BCH) is a cryptocurrency that emerged as a result of a hard fork from the original Bitcoin (BTC) blockchain. Launched on August 1, 2017, Bitcoin Cash was created to address some of Bitcoin’s scalability issues, particularly its limited block size, which slowed down transaction processing times. By increasing the block size, Bitcoin Cash aims to offer faster and cheaper transactions, making it more practical for everyday use.
The key difference between Bitcoin and Bitcoin Cash lies in their block sizes. Bitcoin has a block size limit of 1 MB, while Bitcoin Cash initially increased this to 8 MB and later up to 32 MB. This allows Bitcoin Cash to process more transactions per block, reducing fees and wait times. Supporters of Bitcoin Cash argue that this aligns more closely with Satoshi Nakamoto’s original vision of a peer-to-peer electronic cash system, as outlined in the Bitcoin whitepaper.
Bitcoin Cash operates on a decentralized network, just like Bitcoin, using proof-of-work (PoW) to validate transactions and secure the blockchain. Miners use computational power to solve complex mathematical problems, earning BCH as a reward. However, Bitcoin Cash has faced criticism for being less secure than Bitcoin due to its lower hash rate and smaller community of miners, which could make it more vulnerable to attacks.
Since its inception, Bitcoin Cash has undergone further forks, including the notable split in November 2018 that created Bitcoin SV (Satoshi Vision). Despite these divisions, Bitcoin Cash remains a popular cryptocurrency, often used for payments and remittances. As of March 19, 2025, it continues to be supported by exchanges like Binance, Coinbase, and Kraken, with a dedicated community advocating for its adoption.
Investing in Bitcoin Cash, like any cryptocurrency, carries risks due to its volatility. Its price has fluctuated significantly since its launch, influenced by market trends, regulatory news, and competition from other digital currencies. If you’re considering using or investing in Bitcoin Cash, it’s wise to research wallets, exchanges, and current market conditions thoroughly.
For more details, you can refer to the official Bitcoin Cash website (bitcoincash.org) or explore resources like CoinMarketCap and CoinGecko for up-to-date statistics and analysis.
