What is BCH? Bitcoin Cash (BCH) price and market

Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that resulted from a hard fork in the Bitcoin blockchain in 2017.

Feb 11, 2025 at 03:48 am

What is Bitcoin Cash (BCH)?

Key Points:

• Bitcoin Cash (BCH) is a peer-to-peer electronic cash system with a capped supply of 21 million coins.
• BCH was created in 2017 as a hard fork of Bitcoin, resulting in a split in the Bitcoin blockchain.
• The main difference between Bitcoin and Bitcoin Cash lies in the block size limit, with BCH increasing its block size to 8MB to handle more transactions.
• BCH is supported by a diverse ecosystem of exchanges, wallets, and payment processors.

History of Bitcoin Cash

• 2017 Hard Fork: BCH was launched through a hard fork on the Bitcoin blockchain on August 1, 2017.
• Block Size Debate: The hard fork was driven by disagreements within the Bitcoin community regarding the optimal block size for the network.
• SegWit Activation: Instead of increasing the block size, Bitcoin Core developers implemented Segregated Witness (SegWit), which segregates transaction signatures from the main blockchain, allowing for more transactions to be processed.
• Contentious Split: BCH supporters argued that the 1MB block size limit of Bitcoin was hindering its scalability and adoption, while Bitcoin Core developers prioritized security and stability over transaction throughput.

Technical Features of Bitcoin Cash

• Increased Block Size Limit: BCH has an 8MB block size limit, allowing it to process more transactions than Bitcoin's 1MB block size.
• Fast Transaction Times: With a higher block size, BCH confirms transactions more quickly than Bitcoin, typically within 10 minutes.
• Lower Transaction Fees: Due to its higher block size, BCH can accommodate more transactions without experiencing significant fee increases.
• Simplified Protocol: BCH developers removed obsolete code and data from the Bitcoin protocol, simplifying the chain's maintenance.

Market Performance of Bitcoin Cash

• Price Fluctuations: BCH has experienced significant price fluctuations since its inception.
• Top Market Capitalization: At the time of writing, BCH ranks among the top 30 cryptocurrencies by market capitalization.
• Active Trading: BCH is actively traded on major exchanges, including Coinbase, Binance, and Kraken.

Adoption and Use Cases of Bitcoin Cash

• Payment Processing: BCH is accepted as a payment method by various merchants and services, including Purse.io and BitPay.
• Microtransactions: BCH's low transaction fees make it suitable for small-value transactions.
• Cross-Border Remittances: BCH's fast transaction times and low fees facilitate quick and affordable international money transfers.

FAQs

Q: What is the difference between Bitcoin and Bitcoin Cash?

A: The main difference lies in the block size limit. Bitcoin has a 1MB block size limit, while Bitcoin Cash has an 8MB block size limit, allowing it to process more transactions and reduce fees.

Q: Why was Bitcoin Cash created?

A: Bitcoin Cash was created as a hard fork of Bitcoin in response to a debate within the Bitcoin community regarding the optimal block size for the network.

Q: Is Bitcoin Cash a good investment?

A: The performance of BCH is subject to market fluctuations. Investors should conduct thorough research and consult financial advisors before making investment decisions.

Q: Where can I buy Bitcoin Cash?

A: BCH can be purchased on major cryptocurrency exchanges, such as Coinbase, Binance, and Kraken.