Bitcoin Cash (BCH) was created not just as another digital currency but as a bold test of Bitcoin's decentralization. Originating from a 2017 hard fork of Bitcoin, BCH emerged to address scalability by increasing block size. Today, it stands as a major altcoin with a 32 MB block size, processing 1,000–1,500 transactions per block initially.
What Is a Hard Fork?
Cryptocurrency newcomers often wonder why multiple Bitcoin variants (e.g., Bitcoin Cash, Bitcoin Gold) exist. These are forks—alternative versions of the original cryptocurrency. Forks come in two types:
- Soft Forks: Compatible with both original and new versions.
- Hard Forks: Require software updates to function, creating entirely separate chains (e.g., BCH).
Bitcoin’s hard forks resulted from disagreements over protocol upgrades, leading to new coins for users who supported those changes.
Why Bitcoin Cash Was Created
BCH arose from Bitcoin’s scalability debate. The original Bitcoin’s 1 MB block size limits it to ~4.6 transactions per second, causing delays and high fees during peak usage. BCH proponents advocated larger blocks to solve this, culminating in the 2017 fork.
Key Differences from Bitcoin
- Block Size: 32 MB vs. Bitcoin’s 1 MB.
- Speed: Faster transactions due to reduced congestion.
- Features: Excludes SegWit and Lightning Network but offers quicker mining.
After the fork, BCH further split into BCH ABC (now the dominant chain) and Bitcoin SV (128 MB blocks).
How to Acquire Bitcoin Cash
1. Mining BCH
Hardware: ASIC miners like Antminer S9 (12.93 TH/s) are essential for profitability.
Software: Tools like BFGminer or GUI-based EasyMiner.
Mining Methods:
- Solo Mining: Keep 100% rewards but requires significant resources.
- Pool Mining: Join pools like F2Pool to share rewards.
- Cloud Mining: Rent hash power from providers (beware of scams).
2. Buying BCH
Purchase from exchanges:
👉 Buy BCH on Coinbase
Storing Bitcoin Cash: Wallet Options
| Type | Pros | Examples |
|---|---|---|
| Paper Wallet | Cold storage; ultra-secure | WalletGenerator |
| Software Wallet | Convenient; multi-currency | Exodus |
| Hardware Wallet | Best security | Ledger Nano S |
Pros and Cons of Bitcoin Cash
Advantages
- Low Fees: ~$0.20 per transaction.
- Speed: 32 MB blocks enable faster processing.
- Decentralization: No single entity controls BCH.
Disadvantages
- Volatility: Past exploits (like EDA manipulation) caused price swings.
- Adoption: Fewer merchants accept BCH vs. BTC.
- Trust: Perceived as a "copycat" by some.
FAQ Section
Q: Is Bitcoin Cash the same as Bitcoin?
A: No—BCH is a hard fork with larger blocks and different technical features.
Q: Can I use Bitcoin Cash for daily purchases?
A: Yes! Platforms like Coinsbee offer gift cards and top-ups via BCH.
Q: What’s the future of BCH?
A: BCH aims to become the "PayPal of crypto" with its scalable, low-cost transactions. Experts predict growing adoption.
Final Thoughts
Bitcoin Cash exemplifies how blockchain forks can address scalability. Whether you’re mining, trading, or spending BCH, its low fees and speed make it a compelling option in the crypto world.
👉 Explore BCH on OKX for trading and wallet solutions.