What Is Bitcoin Cash (BCH) and How Does It Work?

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Introduction to Bitcoin Cash (BCH)

Bitcoin Cash (BCH) is an altcoin version of the popular cryptocurrency Bitcoin. It emerged as a result of a hard fork in the Bitcoin blockchain technology, making it one of the most significant forks of Bitcoin. This article explores the history, functionality, and price trends of BCH, along with insights into its subsequent fork into BCHABC (BCH) and BCHSV. We’ll also guide you on where to buy Bitcoin Cash and analyze its market performance.

Note: The abbreviation BCH in this article aligns with BCHABC post-fork. The former was used before the hard fork, while the latter became the standard afterward.


Bitcoin Cash vs. Bitcoin

Bitcoin Cash was created due to diverging views within the Bitcoin community about scaling the network. As Bitcoin’s user base grew, transaction delays became a significant issue, with users waiting hours or even days for confirmations.

Two primary solutions emerged:

  1. Increasing block size (supported by miners).
  2. Restructuring data storage in existing blocks (supported by developers).

The inability to reach consensus led to a hard fork on August 1, 2017, resulting in the birth of Bitcoin Cash. Post-fork, BCH transactions were recorded on a new blockchain, while Bitcoin continued on the original chain.


Key Differences Between Bitcoin Cash and Bitcoin

  1. Block Size:

    • Bitcoin: 1 MB blocks.
    • Bitcoin Cash: 8 MB blocks, enabling faster transactions and lower fees.
  2. Mining Difficulty Adjustment:
    BCH dynamically adjusts mining difficulty based on active miners, attracting more miners due to higher profitability compared to Bitcoin.

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The Bitcoin Cash Fork: BCHABC vs. BCHSV

On November 15, 2018, Bitcoin Cash underwent another hard fork, splitting into:

Most exchanges and users recognize BCHABC as the official Bitcoin Cash.


Where Can You Use Bitcoin Cash?

While Bitcoin Cash adoption is growing, it’s still less widely accepted than Bitcoin. Few merchants currently accept BCH, though some crypto-friendly platforms are integrating it gradually.


Bitcoin Cash Price History

BCH peaked in late 2017 during the crypto bull run, followed by a prolonged decline during the bear market. Post-2019, it regained momentum, reflecting broader market trends.


Where to Buy Bitcoin Cash

1. Coinbase

2. Binance

3. KuCoin

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Conclusion

Bitcoin Cash has navigated a turbulent journey since its 2017 inception. From its hard fork origins to the 2018 split into BCHABC and BCHSV, BCH remains a contentious yet resilient cryptocurrency. Always verify whether you’re purchasing BCHABC or BCHSV, as their values differ significantly.


FAQs

1. Is Bitcoin Cash the same as Bitcoin?

No. Bitcoin Cash is a fork of Bitcoin with larger block sizes and faster transactions.

2. Which is better: BCHABC or BCHSV?

BCHABC is widely recognized as the legitimate Bitcoin Cash, while BCHSV is controversial.

3. Where can I spend Bitcoin Cash?

Limited merchants accept BCH, but adoption is growing.

4. How does Bitcoin Cash improve scalability?

Larger 8 MB blocks allow more transactions per block, reducing fees and delays.

5. Can I mine Bitcoin Cash?

Yes, but profitability depends on mining difficulty and hardware.

6. What was Bitcoin Cash’s highest price?

BCH peaked in late 2017 during the crypto market boom.