Beyond the revolutionary blockchain technology, cryptocurrencies often carry unique narratives that shape their identity in the economic landscape. Bitcoin Cash (BCH) is no exception, blending rivalry, innovation, and community-driven evolution.
This guide explores Bitcoin Cash—its origins, functionality, investment potential, and future outlook. Whether you're a crypto enthusiast or a curious investor, we’ll help you decide if BCH deserves a spot in your portfolio.
What Is Bitcoin Cash?
Bitcoin Cash emerged in 2017 as a hard fork of Bitcoin, designed to address scalability issues. While both share core blockchain technology, BCH distinguishes itself with larger block sizes (32MB vs. Bitcoin’s 1MB), enabling faster transactions (116/second) and lower fees.
Key Features:
- Decentralized PoW Consensus: Miners validate transactions via Proof-of-Work.
- Fixed Supply: Capped at 21 million BCH, with halvings every 4 years.
- Scalability Focus: Prioritizes everyday transactions, aligning with Satoshi Nakamoto’s original vision.
The Bitcoin Cash Story
Origins of the Fork
In 2017, Bitcoin’s community split over scaling solutions:
- Group A: Advocated increasing block sizes to boost transaction capacity.
- Group B: Preferred SegWit (Segregated Witness) to optimize block space.
With no consensus, Group A launched Bitcoin Cash on August 1, 2017. ViaBTC mined the first BCH block, and BTC holders received equivalent BCH tokens.
Post-Fork Evolution
- 2018: Block size expanded to 32MB.
- 2021: Peaked at $1,509 during the bull market.
- 2025: Trades at ~$222.69 (as of July 2025), with a Fear & Greed Index at 74 (Greed).
How Does Bitcoin Cash Work?
Blockchain Mechanics
- Transactions: Recorded on a public ledger with PoW validation.
- Mining Rewards: Miners earn BCH for securing the network.
- Governance: Community-driven upgrades via voting.
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Bitcoin vs. Bitcoin Cash
| Feature | Bitcoin (BTC) | Bitcoin Cash (BCH) |
|---|---|---|
| Block Size | 1MB | 32MB |
| TPS | 7 | 116 |
| Fees | Higher | Lower |
Investing in Bitcoin Cash: Pros and Cons
Pros
✅ Scalability: Handles more transactions at lower costs.
✅ Decentralization: Community-governed, secure, and transparent.
✅ Accessibility: Listed on major exchanges like Coinbase and eToro.
Cons
❌ Identity Struggle: Often seen as a "Bitcoin derivative."
❌ Price Volatility: Hasn’t reclaimed its 2017 all-time high (~$3,324).
Where to Buy Bitcoin Cash
Top Platforms:
- Coinbase: User-friendly, regulatory-compliant.
- eToro: Social trading features; ideal for beginners.
- Bitstamp: Trusted since 2011; supports fiat purchases.
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Is Bitcoin Cash a Good Investment?
Current Outlook (2025)
- Price: $222.69 (moderate recovery from 2023 lows).
- Adoption: Used for micropayments and remittances.
- Risks: Competition from layer-2 solutions (e.g., Lightning Network).
Our Take: BCH suits long-term holders and traders capitalizing on volatility, but diversify with established assets like BTC.
FAQ
1. Can Bitcoin Cash surpass Bitcoin?
Unlikely, due to BTC’s first-mover advantage and larger ecosystem. However, BCH excels in low-cost transactions.
2. How do I stake Bitcoin Cash?
Use platforms like OKX to lock BCH and earn rewards via PoW-secured networks.
3. What’s the max supply of BCH?
21 million, identical to Bitcoin.
4. Why did Bitcoin Cash split again in 2018?
Disputes over further scaling led to the creation of Bitcoin SV (BSV).
Final Thoughts
Bitcoin Cash remains a credible medium of exchange, but its investment appeal hinges on broader adoption. Stay updated with market trends and invest cautiously.
Last Updated: July 2025