Table Of Content
What Is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a peer-to-peer digital currency that split from Bitcoin (BTC) in 2017 through a hard fork.
It was created to address Bitcoin’s growing transaction delays and high fees by offering a faster and more scalable payment system.
Larger block size: BCH increased the block size to 8MB (later 32MB), allowing more transactions to be processed per block.
Lower transaction fees: Because of the increased capacity, BCH typically offers cheaper and faster transactions, especially useful for everyday payments.
Focus on usability: While Bitcoin is seen more as digital gold, BCH aims to function like digital cash — ideal for micro-transactions and retail purchases.
As a result, Bitcoin Cash is commonly used for practical transactions like paying for goods or transferring funds quickly without high costs.
Bitcoin vs. Bitcoin Cash: Key Differences
Bitcoin and Bitcoin Cash share the same origin but were designed with different goals in mind. Here’s how they compare in function and purpose:
Feature | Bitcoin (BTC) | Bitcoin Cash (BCH) |
|---|---|---|
Launch Year | 2009 | 2017 (forked from BTC) |
Block Size | 1MB | 32MB |
Typical Fee | Varies, often several dollars | Usually a few cents |
Speed (TPS) | 3–7 transactions/second | Up to 100+ transactions/second |
Use Case | Store of value, long-term investment | Daily transactions, micro-payments |
Network Security | Higher due to more miners | Lower, but sufficient for common use |
Adoption Focus | Investors, institutions | Everyday consumers and merchants |
Purpose and Vision: Bitcoin (BTC) is now primarily viewed as a store of value or “digital gold,“ while Bitcoin Cash (BCH) focuses on being a fast, low-cost payment method for everyday use.
Block Size and Speed: BTC limits blocks to 1MB, while BCH increased it to 32MB, allowing BCH to process more transactions per second with lower fees.
Transaction Costs: BCH typically charges just a few cents per transaction, making it ideal for retail purchases. BTC fees can rise significantly during peak demand.
Adoption and Use Cases: Bitcoin is widely accepted by institutional investors and used as a hedge against inflation. Bitcoin Cash is often used in real-world commerce, like at online shops or with Bitcoin Cash ATMs.
Community and Development: BTC's upgrades are conservative and consensus-driven. BCH embraces on-chain scaling and frequent updates to improve payment utility.
Security and Network Effect: Bitcoin has a larger network and more hash power, which generally makes it more secure. BCH has a smaller network, but this also means faster confirmation for small-scale use.
How to Use Bitcoin Cash?
Bitcoin Cash (BCH) is designed for practical everyday use — from shopping online to sending money across borders. You don’t need advanced tech knowledge to start using it:
Pay for Goods and Services: Many retailers and websites accept BCH as payment. For example, platforms like BitPay and Purse.io let users pay with BCH for electronics, gift cards, and more.
Send Money Worldwide: BCH allows fast, low-cost transfers, making it useful for remittances or peer-to-peer payments without high bank fees.
Use a BCH Wallet: To store, send, or receive BCH, you'll need a compatible wallet like Trust Wallet, Bitcoin.com Wallet, or Exodus.
Buy and Sell on Exchanges: You can easily trade BCH on popular exchanges such as Coinbase, Binance, and Kraken.
As a result, Bitcoin Cash is a convenient option for those who want a simple, quick, and affordable way to use crypto.
Benefits and Risks of Investing in Bitcoin Cash
Bitcoin Cash can be a powerful investment opportunity, but it comes with both upside and potential pitfalls depending on your goals and risk tolerance.
Pros | Cons |
|---|---|
Low fees for transactions | Lower network security |
Fast processing times | High price volatility |
Real-world use cases | Less mainstream recognition |
Ongoing technical upgrades | Long-term value still debated |
- Lower Transaction Fees
BCH offers significantly lower fees than Bitcoin, making it cost-efficient for frequent use or small transactions.
- Faster Confirmation Times
Because of its larger block size, BCH confirms payments quickly — beneficial for both users and merchants.
- Real-World Utility
BCH is widely accepted for payments and remittances, which supports its long-term practical value.
- Strong Development Community
BCH continues to receive technical upgrades aimed at enhancing scalability and user experience.
- Less Brand Recognition
Despite sharing Bitcoin’s name, BCH is often overlooked by institutional investors and major platforms.
- Smaller Network Security
It has fewer miners and less hash power than BTC, which can raise concerns about network robustness.
- Volatile Price Movements
Like many cryptocurrencies, BCH can experience rapid price swings, making it risky for conservative investors.
- Uncertain Long-Term Value
There is ongoing debate in the crypto community about BCH's long-term role versus Bitcoin or other altcoins.
Where Can You Buy Bitcoin Cash?
You can buy Bitcoin Cash (BCH) from several trusted platforms — each offering different features based on convenience, fees, and payment methods. It’s important to choose a source that fits your needs and experience level.
Crypto Exchanges: Major platforms like Coinbase and Kraken allow you to buy BCH using bank transfers, credit/debit cards, or other cryptocurrencies.
Brokerage Apps: Apps like eToro and Robinhood offer BCH with a simple interface but may limit how you withdraw or transfer the asset.
Bitcoin ATMs: Some ATMs across the U.S. and abroad let you buy BCH with cash, though fees are usually higher.
Peer-to-Peer (P2P) Platforms: Services like LocalCryptos allow you to buy BCH directly from individuals using various payment methods.
Each option comes with different trade-offs for fees, privacy, and speed, so compare before making a purchase.
FAQ
No, Bitcoin Cash is a fork of Bitcoin with a different technical approach. It aims to support faster, cheaper transactions for everyday use.
Yes, many merchants and payment processors accept BCH. Sites like Newegg and platforms using BitPay support BCH for product purchases.
While BCH is focused on payments, some limited smart contract functionality is being explored through layer-2 solutions like CashScript.
As of now, PayPal allows crypto trading but does not support Bitcoin Cash for purchases or transfers outside the platform.
Yes, BCH uses proof-of-work like Bitcoin. However, it has a lower hash rate, meaning it's less competitive but still mineable.
Yes, BCH has a fixed maximum supply of 21 million coins, just like Bitcoin, which helps maintain scarcity.
BCH generally has much lower fees, often just a few cents, even during high activity, making it ideal for micro-transactions.
Yes, it’s considered beginner-friendly due to its fast transactions, low fees, and wide wallet and exchange support.
Popular wallets include Bitcoin.com Wallet, Trust Wallet, and Exodus. They allow you to store, send, and receive BCH easily.
BCH is accepted globally but less widely than Bitcoin. However, adoption is growing in regions focused on crypto payments.
No, BCH runs on proof-of-work, not proof-of-stake. You can’t earn passive income through staking like with other coins.
