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Bitcoin Cash: A Beginner’s Guide

Bitcoin Cash (BCH), a relatively young competitor in the cryptocurrency space, has drawn a lot of attention recently. A hard fork of the original Bitcoin blockchain network was made in 2017 to fix some of the scalability and limiting problems that had dogged the cryptocurrency for years. We will examine what Bitcoin Cash is, how it functions, and its possible future as a cryptocurrency in this beginner’s guide.

Bitcoin Cash: A Beginner's Guide
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Understanding Bitcoin Cash

Bitcoin Cash, a decentralized digital currency working on a blockchain network, shares similarities with Bitcoin but stands out due to key differences, notably its larger block size limit. This difference allows for quicker and more affordable transactions on the BCH network.

The concept of Bitcoin Cash emerged as a response to the persistent scalability issues faced by Bitcoin. The original Bitcoin blockchain has a 1 MB block size limit, causing sluggish transaction times and high fees during peak network activity. This limitation hindered Bitcoin’s practical use for everyday transactions.

Bitcoin Cash came into existence through a hard fork of the Bitcoin blockchain network in August 2017. A hard fork occurs when developers or miners make a significant protocol change, resulting in two separate blockchain networks. In this case, Bitcoin Cash became a distinct cryptocurrency from Bitcoin.

How Bitcoin Cash Operates

Technically similar to Bitcoin, Bitcoin Cash uses nodes to validate transactions and a proof-of-work (PoW) consensus algorithm. Miners, through computational power, validate transactions and earn BCH as rewards. However, notable differences exist:

  1. Block size limit: Bitcoin Cash has a larger block size limit (32 MB) compared to Bitcoin’s 1 MB, facilitating faster and cheaper transactions.
  2. Transaction times: The larger block size allows for quicker transaction processing, making BCH more practical for daily transactions.
  3. Transaction fees: Faster transactions lead to lower fees on the BCH network, enhancing affordability for users.
  4. Smart contracts and apps: BCH supports smart contracts and apps like CashShuffle and CashFusion, providing enhanced privacy and security.

Future Developments for Bitcoin Cash

Potential future developments could significantly impact Bitcoin Cash’s adoption and use as a cryptocurrency:

  1. Merchant adoption: Increased acceptance by merchants could boost BCH’s use and value as a practical payment method.
  2. Integration with traditional systems: Integration with banks and payment processors might streamline BCH transactions for users.
  3. Smart contracts and apps development: Ongoing enhancement of these protocols could make BCH more appealing to privacy-conscious users.
  4. Competition from other cryptocurrencies: Amidst competition from Litecoin (LTC) and Ripple (XRP), BCH must differentiate itself to remain relevant.

Is Bitcoin Cash a Worthy Investment?

Considering the risks and rewards associated with investing in Bitcoin Cash, it’s crucial to assess its potential:

While BCH has gained attention for faster transactions and lower fees than Bitcoin, challenges persist in merchant and business adoption. Competing with emerging cryptocurrencies like Litecoin (LTC) and Ripple (XRP), BCH’s relevance depends on its ability to stand out in the evolving market. If you believe in its potential and are comfortable with associated risks, adding BCH to a diversified investment strategy could be worth considering.

December 30, 2023 at 5:00 pm

Updated December 30, 2023 at 5:00 pm


Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)


Cryptocurrency is a digital form of currency secured by cryptography, not controlled by governments or banks.

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Best practices for crypto investment include research, diversification, investing what you can afford to lose, and avoiding hype-driven investments.

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