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Bitcoin Cash (BCH), which is sometimes called Bcash, was created on August 1, 2017 as a fork of Bitcoin (BTC).
It’s similar to Bitcoin in many ways but has some technical differences that also makes it very different.
This guide explains what Bitcoin Cash is, how it works and what makes it different than Bitcoin.
| Icon | Symbol | Initial release date | Algorithm type | Max. supply |
|---|---|---|---|---|
 | BCH, BCC, Ƀ | 1 August 2017 | SHA-256 | 21 million BCH |
Just like Bitcoin (BTC), Bitcoin Cash (BCH) is a peer-to-peer cryptocurrency, which can be sent directly to anyone, anywhere in the world without the use of a third-party intermediary.
There are two differences between Bitcoin Cash and Bitcoin:
Because of these differences, many people think of Bitcoin as a kind of digital gold, and Bitcoin Cash as a kind of digital cash.
Bitcoin Cash has some technical differences that make it cheaper to use than Bitcoin.
Specifically, it has a 32MB (megabyte) block size, while Bitcoin has a 1MB block size. This means the Bitcoin Cash blockchain can carry a lot more transactions, which keeps its fees low even in times of high use.
By contrast, in times of high activity the Bitcoin blockchain fills up and transactions have to start queuing, which slows down transfer times and raises fees.
In a nutshell, BCH is much faster and cheaper than BTC.
The main technical downside of larger blocks is that they’re harder for miners to digest, which can lead to problems like unintentionally splitting the blockchain into multiple branches. It also gives an extra advantage to the miners who are able to digest them more easily, which increases the risk of a blockchain centralizing around those kinds of miners.
Fortunately, in the case of Bitcoin Cash this is more of a theoretical problem than an actual one, as 32MB is not large enough to cause these kinds of problems.
The main reason BCH is worse than BTC is simply because BTC is worth a lot more, so more people use BTC than BCH.
In fact, Bitcoin Cash has never even come close to fully utilizing its large block size.
In cryptocurrencies like Bitcoin and Bitcoin Cash, the value of a coin is also functionally very important because it determines how secure and reliable the network is. This is because the more valuable a coin is, the more miners it can support.
The chart below shows the mining power, known as hashrate, of Bitcoin (blue) vs. Bitcoin Cash (red).
As you can see, Bitcoin consistently has a much higher hashrate than Bitcoin Cash, and so is more resistant to certain types of attacks.
Still, despite the huge difference, Bitcoin Cash is still believed to have sufficient hashrate to withstand realistic attacks.
But if Bitcoin Cash is cheaper and faster, why is Bitcoin worth more?
No one knows for sure, but there are two main theories: an economic one and a social one.
One theory holds that frictions, such as higher fees and slower transfers, are actually good for maintaining the value of assets.
This is because it makes it more difficult and expensive to dispose of, either by selling or spending. These high fees and slow transfers subtly encourage people to hold onto their Bitcoin instead of spending it, which reduces the total amount of Bitcoin available on the open market and drives prices upwards.
The social theory is that people are simply more attracted to Bitcoin because it’s worth more, which in turn makes it even more valuable and more attractive.
BTC also bears the original Bitcoin name, which helps increase its brand recognition.
Current development in Bitcoin Cash is largely geared towards utilizing its large block size for purposes other than simply carrying BCH transactions.
The large block size creates ample room to carry smart contract type programs on the Bitcoin Cash blockchain, although there are some challenges associated with adapting the underlying Bitcoin framework for smart contracts, which other blockchains don’t have to contend with.
Bitcoin Cash functionally performs much better than Bitcoin and its larger block size hasn’t resulted in any significant downsides. But is that enough?
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I made a mistake and bought Bitcoin cash and they was sent to my wallet address and I contact the Bitcoin wallet developers and no one is responding how can I get my Bitcoin cash to turn into Bitcoins is there any way you guys can change my Bitcoin cash into Bitcoins to my wallet because its not showing nothing on my wallet and I also have my receipt from the Bitcion Merchant I purchase the Bitcoin cash from.
Hi Ansu,
Thanks for getting in touch with finder. I believe you want to change your Bitcoin Cash to Bitcoin. Unfortunately, we can’t change your BCH to BTC since we are a comparison website and don’t handle digital coins directly.
If you want to turn your BCH to BTC< you just need to sell or trade your BCH to BTC again. All you need to do is find someone who wants to make a deal with you. You may also look for an exchange that will let you sell your BCH for BTC.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi,
I bought bitcoin cash instead of bitcoin on coinbase, how do I rectify this?
Hi Kal,
Thank you for visiting finder.
For every transaction that you will place in Coinbase, you will be receiving a confirmation to ensure that you allow the purchase to be processed. You may cancel your transaction by not confirming the prompt after you place your purchase for the Bitcoin Cash. Another option is to sell your Bitcoin Cash then buy the Bitcoin that you prefer.
You may also read this page for more information regarding Coinbase.
I hope this helps.
Let us know if there is anything else that we may assist you with. Enjoy the rest of your day!
Cheers,
Ash
Is there, as of now, any website for mining bitcoin cash.
Hello Mofor,
Good day! Appreciate you contacting finder regarding your inquiry today.
You may refer to this page – https://www.finder.com/bitcoin-mining, for a comprehensive guide regarding bitcoin mining. As well, you can see there and compare Bitcoin cloud mining providers. You can click on the green “Go to site” button for each of the providers and you will be redirected to their website.
Hope this helps!
All the best,
Ron
I want to buy bitcoin cash and use this to buy electronic goods from a supplier who only accepts bitcoin cash as payment. How do I buy bitcoin cash for this purpose and how do I use this?
Hi Susu,
Thanks for your inquiry
The page above shows you where and how you can obtain Bitcoin Cash. It also shows where you can use your Bitcoin Cash as payment. Please check the information on this page to know more about this.
Hope this information helps
Cheers,
Arnold
Hello.I just want to find out how do I go about buying Bitcoin cash and what the platforms where a person can buy n sell bitcoin cash.
Hi Pinky,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You are on the right page. You may review and compare the offers available on the table above. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle