Bitcoin Cash | Trading Non Stop

What is BCH?

Bitcoin Cash (BCH) is a decentralized cryptocurrency created as a scalable, low-cost alternative to Bitcoin. It focuses on fast, peer-to-peer transactions by using larger block sizes and regular protocol upgrades.

Forked from Bitcoin – Launched in 2017 to solve Bitcoin’s scalability challenges by increasing block size.
Payment-focused – Designed for quicker transactions with very low fees.
Growing capabilities – Recent updates support smart contracts and decentralized finance (DeFi) applications.

Deep Dive

1. Purpose & Value Proposition

Bitcoin Cash was born from a split in the Bitcoin community in 2017, caused by different ideas on how to handle more transactions. While Bitcoin chose solutions like SegWit and Layer-2 networks such as Lightning, Bitcoin Cash increased its block size (starting at 8MB, now 32MB) to fit more transactions directly on the blockchain. This approach aims to realize the original idea of “electronic cash” by enabling instant payments with fees less than a penny, making it practical for everyday purchases.

2. Technology & Architecture

Bitcoin Cash uses the same basic security method as Bitcoin, called SHA-256 proof-of-work, but differs in key ways:

Block size: With 32MB blocks, BCH can handle about 200 transactions per second, compared to Bitcoin’s roughly 7.
Upgrades: The May 2025 Velma hard fork added features like VM Limits and BigInt, which improve smart contract functionality and allow BCH to support more complex DeFi applications. These upgrades enable precise calculations needed for financial tools while keeping transaction costs low compared to platforms like Ethereum.
Governance: Changes are made through community consensus, with development led by groups such as Bitcoin Cash Node and Bitcoin Verde.

3. Ecosystem Fundamentals

Bitcoin Cash is focused on real-world use:

Payments: Accepted by around 2,550 merchants worldwide, including Overstock.com, for affordable international transactions.
DeFi: Uses CashTokens (its native token standard) and CashScript to support lending, automated market makers (AMMs), and cross-chain bridges.
Developer tools: Offers resources like the Cashonize Wallet and software development kits (SDKs) to make building on BCH easier.

Conclusion

Bitcoin Cash blends Bitcoin’s security with scalable, low-cost payments and expanding DeFi features. While it remains focused on fast, inexpensive transactions, recent upgrades position BCH as a strong player in programmable money. The key question is whether BCH can successfully combine its payment roots with smart contract innovation to create a unique space alongside Ethereum and Bitcoin.