What is BCH?
Bitcoin Cash (BCH) is a cryptocurrency that split from Bitcoin in 2017. It’s designed to be fast and affordable for everyday transactions, working as “peer-to-peer electronic cash.”
- Purpose: Made for daily payments with quicker processing and lower fees than Bitcoin.
- Technology: Uses bigger block sizes (32MB) to handle more transactions and added smart contract features in 2025.
- Difference: Focuses on practical use rather than Bitcoin’s role as “digital gold.”
Deep Dive
1. Purpose & Value Proposition
Bitcoin Cash was created during a debate in 2017 about how to make Bitcoin scale better. Supporters wanted bigger blocks (32MB instead of Bitcoin’s 1MB) to lower fees and speed up transactions. The goal was to make BCH work like cash for everyday use, such as shopping or sending money to family, with transaction costs under one cent (CoinMarketCap).
2. Technology & Upgrades
BCH uses the same basic security method as Bitcoin (called SHA-256 proof-of-work) but chose not to adopt Bitcoin’s SegWit upgrade, which is a Layer 2 scaling solution. Instead, BCH focuses on bigger blocks to handle more transactions directly on the blockchain. In May 2025, BCH introduced VM Limits and BigInt upgrades that improved its smart contract abilities. These upgrades allow BCH to support decentralized finance (DeFi) applications and perform precise calculations, all while keeping transaction fees very low (Levex).
3. Key Differentiators
- Speed: Transactions usually confirm in about 60 seconds, compared to Bitcoin’s 10 minutes.
- Cost: Fees are about 99% cheaper than Bitcoin’s average transaction fees.
- Philosophy: BCH focuses on scaling by increasing block size rather than relying on additional layers like Bitcoin does.
Conclusion
Bitcoin Cash is a cryptocurrency built for fast, low-cost payments with ongoing improvements like smart contract upgrades in 2025. While it shares Bitcoin’s decentralized foundation, BCH aims to serve users who need affordable, everyday transactions. The big question is whether its straightforward approach and new features will help it grow alongside competitors like stablecoins and Layer 2 networks.