When politics intersects with blockchains, hard forks can initiate new projects. Bitcoin Cash (BCH) was created by a group of developers, investors, entrepreneurs, and miners dissatisfied with Bitcoin's development plans. Launched in August 2017, Bitcoin Cash is a peer-to-peer electronic cash system emphasizing scalability and low transaction fees. The project is also referred to as Bitcoin ABC (Adjustable Blocksize Cap).
The Birth of Bitcoin Cash
In 2017, Bitcoin faced slow transaction confirmation times and rising fees, contradicting its original purpose of near-instant transactions with minimal costs. Before Bitcoin Cash's creation, the Bitcoin community debated the implications of increasing the block size limit.
Since Bitcoin is decentralized, protocol changes require consensus. All network nodes must agree on software updates, making scalability solutions contentious.
Bitcoin Cash emerged as a more scalable cryptocurrency, offering lower fees and faster confirmations. The BCH community argues it aligns closer with Satoshi Nakamoto's vision of peer-to-peer electronic cash, providing a cheaper and faster payment system suitable for everyday use.
Key Differences Between Bitcoin and Bitcoin Cash
Block Size and Scalability
- Bitcoin: 1MB block size (expanded via SegWit).
- Bitcoin Cash: Initially 8MB, later increased to 32MB.
👉 Why block size matters for scalability
Consensus Adjustments
- Bitcoin adjusts mining difficulty every 2,016 blocks.
- Bitcoin Cash adjusts difficulty per block via the Difficulty Adjustment Algorithm (DAA).
Technological Upgrades
- SegWit: Implemented by Bitcoin (soft fork).
- Schnorr Signatures: Adopted by BCH in 2019 for enhanced privacy and efficiency.
Bitcoin Cash Features
- Supply: Capped at 21 million (like BTC).
- Consensus: Proof of Work (PoW).
- Block Time: 10 minutes.
- Smart Contracts: Planned for future updates.
Adoption and Use Cases
BCH is marketed as "digital cash" for everyday transactions due to:
- Low fees (~$0.01 per transaction).
- Fast confirmations (~10 minutes).
However, merchant adoption remains limited. While platforms like Bitcoin.com list BCH-accepting stores, verification suggests some entries are outdated.
👉 Best wallets for Bitcoin Cash
Bitcoin Cash vs. Bitcoin SV
In 2018, a faction forked BCH to create Bitcoin SV (BSV), increasing the block size to 2GB. Backed by Craig S. Wright—who controversially claims to be Satoshi Nakamoto—BSV lacks broad crypto-community support.
FAQs
Is Bitcoin Cash better than Bitcoin?
BCH offers faster/cheaper transactions but sacrifices some security due to larger blocks. Bitcoin remains dominant in liquidity and adoption.
Can I send BTC to a BCH address?
No. They operate on separate blockchains.
What wallets support BCH?
- Hardware: Ledger, Trezor.
- Software: Trust Wallet, Electrum Cash.
Conclusion
Bitcoin Cash remains relevant but trails Bitcoin in adoption. Its focus on practicality (low fees, fast transactions) keeps it competitive, though larger blocks raise security trade-offs.
For those prioritizing everyday usability, BCH is a viable alternative—but always research and verify wallet/merchant compatibility.