Bitcoin Cash: The Scalable Cryptocurrency Revolutionizing Peer-to-Peer Payments

Modified on Mon, 17 Feb at 12:48 PM

Bitcoin Cash:Everything you need to know

Bitcoin Cash (BCH) is a cryptocurrency that emerged from a hard fork of Bitcoin (BTC) in 2017. A hard fork is a radical change to a blockchain protocol that creates a new version of the blockchain with different rules and features. The main reason for the hard fork was to increase the block size limit of Bitcoin, which determines how many transactions can be processed in each block. The Bitcoin community was divided over this issue, as some argued that increasing the block size would improve the scalability, speed, and affordability of Bitcoin, while others feared that it would compromise its security, decentralization, and network effects.

The hard fork resulted in two separate blockchains: Bitcoin and Bitcoin Cash. Bitcoin continued to operate with a 1 MB block size limit, while Bitcoin Cash increased its limit to 8 MB initially, and later to 32 MB. This means that Bitcoin Cash can process more transactions per second than Bitcoin, which reduces the congestion on the network and lowers the fees for users. According to BitInfoCharts1, the average transaction fee for Bitcoin Cash as of December 2021 was $0.0016, while the average fee for Bitcoin was $0.92.

Bitcoin Cash also introduced some other technical improvements over Bitcoin, such as a new difficulty adjustment algorithm, a replay protection mechanism, and a transaction signature format. These changes were intended to enhance the performance, security, and usability of Bitcoin Cash.

Bitcoin Cash aims to fulfill the original vision of Bitcoin as a peer-to-peer electronic cash system that enables fast, cheap, and global payments without intermediaries or censorship. Bitcoin Cash supporters believe that Bitcoin has deviated from this vision and become more of a store of value than a medium of exchange. They argue that Bitcoin Cash is more aligned with the needs and preferences of everyday users and merchants who want to use cryptocurrency for practical purposes.

Bitcoin Cash is one of the most popular and widely used cryptocurrencies in the world. It ranks among the top 20 cryptocurrencies by market capitalization2, and has a loyal and active community of supporters and developers. It is also supported by many platforms and services that allow users to buy, sell, store, send, receive, and spend Bitcoin Cash. Some examples are Coinbase3, Binance4, BitGo, BitPay, and Crypto.com.

Bitcoin Cash is not without its challenges and controversies, however. It has faced several hard forks itself, such as Bitcoin SV (BSV) in 2018 and Bitcoin ABC (BCHA) in 2020, which created further divisions and conflicts within the community. It has also faced criticism from some Bitcoin proponents who accuse it of being inferior, insecure, or misleading compared to Bitcoin.

Bitcoin Cash is an ambitious project that seeks to bring back the original spirit and functionality of Bitcoin as a peer-to-peer electronic cash system. It offers a faster and cheaper alternative to Bitcoin for users who value speed, affordability, and scalability over security, decentralization, and network effects. Whether it can succeed in its mission and compete with other cryptocurrencies remains to be seen.