Bitcoin Cash (BCH) is a cryptocurrency that emerged from a Bitcoin (BTC) hard fork in 2017. It was created to address issues Bitcoin faced, such as slow transaction speeds and high fees. To improve network throughput, Bitcoin Cash developers increased the block size from Bitcoin’s 1 MB to 8 MB, later
expanding it to 32 MB. This allows BCH to handle more transactions in less time and at lower costs.
Key Features of Bitcoin Cash
Transaction Speed:
With its larger block size, the BCH network processes transactions faster.Low Fees: BCH is
designed for everyday transactions, making it ideal for micropayments.Decentralization:
Despite criticism over its larger blocks, Bitcoin Cash maintains principles of decentralization.
Thus, Bitcoin Cash has become a solution for users who want fast and affordable transfers without significant
delays or high fees.
Comparison of Bitcoin Cash to Other
Cryptocurrencies and Bitcoin
Comparing Bitcoin Cash to other popular cryptocurrencies, especially Bitcoin, highlights several
distinctive features.
Differences Between Bitcoin Cash and Bitcoin:
Block Size and Transaction Speed:
The primary technical difference between BCH and BTC is the block size.
Bitcoin’s block size is limited to 1 MB, allowing about 3–7 transactions per second. Bitcoin Cash initially increased its block size to 8 MB, later expanding it to 32 MB, enabling it to handle
hundreds of transactions per second. This makes BCH more suitable for everyday payments, reducing network load and latency.Transaction Fees:
High fees are one of Bitcoin’s primary challenges, especially during network congestion. Users often need to pay more to speed up transaction processing. Conversely, Bitcoin Cash keeps fees low,
making it more accessible for micropayments and smaller purchases where transaction fees are significant.Scalability and Solution Approaches:
Bitcoin seeks scalability by implementing additional solutions like the Lightning Network, which processes transactions off the main network to reduce blockchain load. However, this requires extra
technology and time for integration. Bitcoin Cash chose a different path, increasing block size to support scalability within the main network, albeit with higher hardware requirements for
nodes.Decentralization and Security:
Some users believe BCH’s increased block size may affect decentralization, as network nodes require more computing power and storage. Bitcoin supporters argue that BTC’s original blockchain better upholds decentralization principles. BCH supporters, however, claim that the cryptocurrency remains sufficiently decentralized and that its approach optimally balances speed, security, and user convenience.
Comparison to Other Cryptocurrencies, Like
Ethereum
Bitcoin Cash not only competes with Bitcoin but also with other cryptocurrencies like Ethereum (ETH) and Litecoin (LTC), which aim to offer faster and more affordable transactions.
Ethereum
supports transactions and the creation of smart contracts and decentralized applications (dApps). It offers broader functionality than BCH, often being used to create tokens and decentralized finance (DeFi) applications. However, transaction fees on Ethereum can be high during periods of network congestion. In this regard, Bitcoin Cash has an advantage, as its transaction fees remain low.
Litecoin (LTC)
was created as “digital silver” to complement Bitcoin’s “digital gold.” It shares similar goals with Bitcoin Cash, striving for faster and more accessible transactions. Litecoin’s block size is smaller than Bitcoin Cash’s, but its block generation time is shorter (2.5 minutes compared to Bitcoin’s 10 minutes), enhancing
transaction speeds. Litecoin is often considered a direct alternative to BCH, with the choice between these two cryptocurrencies depending on users’ functionality and accessibility preferences.
Ripple (XRP)
differs from most cryptocurrencies as it was developed not as a decentralized currency but as a system for bank transfers and large financial transactions. Ripple focuses on fast and affordable international payments. While Bitcoin Cash also offers low fees, Ripple is primarily used for international transfers and isn’t
designed for small, daily transactions like BCH.
Buying Bitcoin Cash
The process of buying Bitcoin Cash is straightforward, involving a few steps to ensure the asset’s security and proper management.
Set Up a BCH Wallet:
The first step is to set up a wallet to store Bitcoin Cash. A wallet is essential for managing coins and conducting transactions. Different types of wallets are available:
Hardware wallets:
Physical devices like Ledger and Trezor offering maximum
security.Mobile and desktop wallets: Applications like Trust Wallet and Atomic Wallet, which are convenient for crypto management.
Online wallets:
Less secure due to internet connectivity but suitable for quick access.
Find an Exchange to Buy BCH:
Next, choose a cryptocurrency exchange where you can purchase Bitcoin Cash. Major exchanges like Binance, Coinbase, and Kraken allow users to buy BCH easily with bank transfers, cards, and other payment
methods.
Considerations When Choosing an Exchange:
Transaction fees.
Payment methods.
Security level and support.
Withdraw Your Coins:
After buying BCH on an exchange, it’s important to withdraw the coins to a personal wallet. This safeguards funds from risks associated with storing them on exchanges, such as hacking and account restrictions.
Cost of Buying Bitcoin Cash
The price of Bitcoin Cash (BCH) fluctuates based on market conditions, supply, and demand. Like other
cryptocurrencies, BCH’s value is highly volatile.
Factors affecting BCH price include:
Market demand and supply: If BCH demand rises, its price increases.
News and events in the crypto world: Updates, partnerships, and regulatory changes can significantly influence prices.
Overall crypto market conditions: Cryptocurrency prices are often interconnected, so changes in Bitcoin or Ethereum values can impact BCH.
What is the Limit to Buy Bitcoin Cash?
Some applications set purchase limits that may vary. Limits often depend on the user’s verification level and
current platform policies. In most cases, cryptocurrency purchase limits may reach around $10,000 per week, but exact figures should be confirmed directly in the app.
Bitcoin Cash Forecasts and Future
Bitcoin Cash’s future depends on factors such as technological developments, cryptocurrency adoption, and overall market sentiment. If BCH gains widespread use for payments and micropayments, demand and price may rise. The development team continues to improve the network, which could enhance the cryptocurrency’s popularity. Positive regulation could also boost institutional and retail investor interest in
BCH.
Bitcoin Cash holds growth potential as a practical, affordable transaction platform with low fees. The
cryptocurrency is suitable for both investors and everyday users seeking a fast, accessible digital payment tool. Understanding the main steps for buying and storing BCH—from choosing a platform to setting up a wallet—helps protect funds and simplifies asset management.