What is Bitcoin Cash and Why is it Different from Bitcoin

Bitcoin Cash may not get as much media attention as Bitcoin, but it plays an important role in the crypto ecosystem. By focusing on scalability, low fees, and real-world use, BCH offers an alternative vision of what digital money can be.

When you hear the word “Bitcoin,” you probably think of the original cryptocurrency, the one that started it all. But in 2017, a split in the Bitcoin community gave birth to a new coin: Bitcoin Cash (BCH). While it shares the same origin story and much of the same codebase, Bitcoin Cash has taken a different path, with a focus on faster, cheaper everyday transactions.

So what exactly is Bitcoin Cash, and what makes it different from the original Bitcoin? Let’s break it down in simple terms.

What Is Bitcoin Cash?

Bitcoin Cash (BCH) is a peer-to-peer digital currency that was created as a hard fork of Bitcoin in August 2017. A hard fork means the blockchain split into two, one continued as Bitcoin (BTC), and the other became Bitcoin Cash.

The reason for the split? Disagreements over scalability. Some developers and users believed that Bitcoin needed to process transactions faster and cheaper to truly become a usable form of money and not just a store of value. Bitcoin Cash was created to fulfill that vision.

What Makes Bitcoin Cash Unique?

1. Larger Block Size

The biggest technical difference is block size. While Bitcoin has a block size limit of 1MB (later expanded with SegWit), Bitcoin Cash started with 8MB blocks and has since increased to 32MB. Larger blocks mean more transactions can be processed in each block, reducing congestion and keeping transaction fees low.

2. Faster Transaction Times

Because of the larger blocks and less congestion, Bitcoin Cash typically has faster confirmation times than Bitcoin. This makes it more practical for everyday purchases, like buying coffee or groceries.

3. Low Fees

One of BCH’s main selling points is low transaction fees, often just a fraction of a cent. That makes it more appealing for small payments, microtransactions, and cross-border transfers, especially in regions with limited access to traditional banking.

4. Shared History with Bitcoin

Up until the point of the fork in 2017, Bitcoin and Bitcoin Cash share the same transaction history. That means anyone who held BTC before the fork automatically received an equal amount of BCH.

5. A Focus on Peer-to-Peer Use

While Bitcoin has evolved into more of a digital gold or investment asset, Bitcoin Cash continues to push the vision of becoming “electronic cash” for the world, true to Satoshi Nakamoto’s original vision in the Bitcoin whitepaper.

Is Bitcoin Cash Widely Used?

Bitcoin Cash is accepted by thousands of merchants worldwide and is supported by most major crypto wallets and exchanges. While it doesn't have the same level of adoption as Bitcoin, it's popular in some developing countries where users value low fees and fast processing.

Being a newcomer or a crypto veteran, understanding Bitcoin Cash gives you deeper insight into the ongoing debates and innovations in the world of blockchain.