Bitcoin Cash (BCH) is a cryptocurrency payment network designed to fulfill the original vision of Bitcoin—enabling fast, low-cost, peer-to-peer transactions for everyday use. While Bitcoin remains the gold standard in the crypto world, its scalability limitations have long been a point of contention. With a 1 MB block size limit, Bitcoin often suffers from high transaction fees and slow processing times, making it less practical for daily payments.
Bitcoin Cash emerged as a solution to these issues. On August 1, 2017, a group of developers and miners initiated a hard fork from the Bitcoin blockchain, launching Bitcoin Cash with an initial block size of 8 MB—later increased to 32 MB in 2018. This larger block size allows for more transactions per block, significantly reducing fees and confirmation times.
👉 Discover how Bitcoin Cash enables faster and cheaper transactions compared to traditional networks.
How Bitcoin Cash Works
Bitcoin Cash operates similarly to Bitcoin, using a proof-of-work (PoW) consensus mechanism secured by miners who validate transactions and add new blocks to the blockchain. Both networks use the SHA-256 hashing algorithm, ensuring compatibility in mining infrastructure.
However, one key difference lies in difficulty adjustment. While Bitcoin adjusts mining difficulty every 2,016 blocks (approximately every two weeks), Bitcoin Cash recalibrates every 10 minutes. This frequent adjustment helps maintain consistent block times even during sudden shifts in network hash power, improving stability and accessibility for miners.
Each time a miner successfully adds a block, they receive a block reward—currently 6.25 BCH per block, following the 2020 halving event. Like Bitcoin, Bitcoin Cash implements a halving mechanism every 210,000 blocks (roughly every four years), reducing the issuance rate and creating a deflationary supply model. The next halving is expected in 2024, which will cut the reward to 3.125 BCH per block.
With a maximum supply capped at 21 million coins, Bitcoin Cash mirrors Bitcoin’s scarcity-driven economic design. As of now, over 19.17 million BCH are in circulation, with approximately 17.12 million unique addresses holding the asset.
Key Features of Bitcoin Cash
Scalability Through Larger Blocks
By increasing block sizes up to 32 MB, Bitcoin Cash supports higher throughput—thousands of transactions per second under optimal conditions—making it more suitable for retail and microtransactions.
Low Transaction Fees
Thanks to its expanded capacity, average transaction fees on the Bitcoin Cash network remain below $0.01, making it one of the most cost-effective digital cash systems available.
Peer-to-Peer Electronic Cash
True to Satoshi Nakamoto’s original whitepaper vision, Bitcoin Cash prioritizes usability as digital money. Users can send and receive BCH instantly across borders without intermediaries or censorship.
Support for Smart Contracts and DApps
While traditionally seen as a payments-focused chain, Bitcoin Cash has evolved to support smart contracts through tools like CashScript, Spedn, and Libauth. Decentralized applications (DApps) such as CashFusion, Flipstarter, and AnyHedge operate on the network, enhancing privacy and financial functionality.
👉 Explore decentralized applications built on scalable blockchain networks like Bitcoin Cash.
SmartBCH: Expanding Functionality with a Sidechain
In July 2021, the SmartBCH sidechain was launched to unlock advanced capabilities while preserving the security and simplicity of the main Bitcoin Cash chain. SmartBCH is fully compatible with Ethereum Virtual Machine (EVM) and Web3 APIs, allowing developers to deploy Ethereum-based DApps with minimal modifications.
Crucially, SmartBCH does not introduce a new native token—BCH is used for all gas fees and transactions on the sidechain. This integration maintains economic unity across both chains while enabling high-throughput DeFi, NFTs, and cross-chain interoperability.
BCH Price History and Market Dynamics
Bitcoin Cash’s price trajectory has largely followed broader market trends, especially movements in Bitcoin’s value. However, internal developments have also played pivotal roles in shaping its valuation.
One of the most significant events was the 2018 hard fork that led to the creation of Bitcoin SV (BSV). A ideological split between two factions—one supporting Bitcoin ABC (led by Roger Ver and Jihan Wu) and another advocating for Bitcoin SV (backed by Craig Wright and Calvin Ayre)—resulted in network fragmentation.
This conflict caused BCH’s price to plummet from $444 on November 15, 2018**, to a low of **$76 by December 16, reflecting investor uncertainty and reduced confidence during the chain war.
Despite this setback, Bitcoin Cash rebounded during the 2020–2021 bull run, reaching an all-time high near $4,355 in April 2021, driven by growing adoption, institutional interest, and integration of stablecoins like Tether (USDT) via the SLP (Simple Ledger Protocol).
The launch of USDT on Bitcoin Cash in March 2020 marked a major milestone, enabling stable-value transfers and expanding use cases for remittances, trading, and DeFi-like services on the network.
Founding Vision and Community Development
Bitcoin Cash was not created by a single individual but emerged from a coalition of miners, developers, and early adopters who believed in returning to Bitcoin’s original purpose as peer-to-peer electronic cash.
Key figures include:
- Roger Ver – Early investor and vocal advocate for larger blocks.
- Amaury Séchet – Lead developer of Bitcoin ABC software.
- Jihan Wu – Co-founder of Bitmain, a major mining hardware producer.
- ViaBTC – Influential mining pool that supported the fork.
These stakeholders opposed the SegWit2x upgrade proposal on Bitcoin, which aimed to increase capacity through off-chain solutions. Instead, they championed on-chain scaling via bigger blocks—a philosophy that ultimately gave rise to Bitcoin Cash.
Frequently Asked Questions (FAQ)
Q: What is the main difference between Bitcoin and Bitcoin Cash?
A: The primary difference is block size. Bitcoin Cash uses larger blocks (up to 32 MB) compared to Bitcoin’s 1 MB limit, allowing faster transactions and lower fees.
Q: Is Bitcoin Cash a good investment?
A: As with any cryptocurrency, investment potential depends on market conditions, adoption trends, and technological progress. Its fixed supply and utility as digital cash contribute to long-term value propositions.
Q: Can I use Bitcoin Cash for everyday purchases?
A: Yes. Companies like Newegg, Twitch (historically), Namecheap, airBaltic, and eGifter have accepted BCH for goods and services.
Q: How does the halving affect BCH price?
A: Halvings reduce new coin issuance, potentially increasing scarcity. Historically, such events precede bullish market cycles due to reduced selling pressure from miners.
Q: Where can I store Bitcoin Cash securely?
A: You can store BCH in hardware wallets (e.g., Ledger, Trezor), software wallets (ElectrumCash, Exodus), or mobile apps like Trust Wallet.
Q: Does Bitcoin Cash support smart contracts?
A: Yes. Through programming languages like CashScript and platforms like SmartBCH, developers can build decentralized applications with complex logic.
Conclusion
Bitcoin Cash continues to position itself as a practical digital currency optimized for speed, affordability, and global accessibility. With ongoing development in smart contracts via SmartBCH and growing ecosystem support, BCH remains a relevant player in the evolving blockchain landscape.
Whether you're interested in fast cross-border payments, low-cost micropayments, or exploring EVM-compatible DApps on a secure base layer, Bitcoin Cash offers a compelling blend of innovation and utility.
👉 Start exploring blockchain networks that combine speed, low fees, and real-world usability today.