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What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is a decentralized, peer-to-peer electronic cash system designed to make sending and receiving money fast, inexpensive, and globally accessible. Launched in 2017 as a hard fork of Bitcoin, it preserves Bitcoin’s fixed supply and Proof-of-Work security while scaling throughput directly on-chain to support everyday payments.

To start using Bitcoin Cash today, download the Bitcoin.com Wallet app - a secure, user-friendly self-custodial wallet for storing, sending, and accepting BCH worldwide.

Bitcoin Cash (BCH) is a decentralized, peer-to-peer electronic cash system created to make digital money fast, reliable, and accessible to anyone with an internet connection. It combines Bitcoin’s fixed supply and Proof-of-Work security model with a design optimized for practical, everyday payments - from international remittances to retail purchases to micro-transactions.

Overview

Bitcoin Cash launched on August 1, 2017, as a hard fork of the Bitcoin (BTC) blockchain. The split was the result of a long-running disagreement within the Bitcoin community about how the network should scale. One side supported a path centered on small blocks + SegWit + off-chain solutions (Lightning Network). The other believed Bitcoin should scale on-chain, directly increasing block capacity to allow higher throughput and lower fees.

Supporters of the on-chain approach initiated a chain split, giving rise to Bitcoin Cash, a network designed to maintain Bitcoin’s original purpose as outlined in the 2008 whitepaper:

“A purely peer-to-peer version of electronic cash.”

Since launch, BCH has continued to evolve, adding technologies such as CashTokens, CashFusion, CashShuffle, and efficiency improvements that keep the network fast, affordable, and reliable.

Today, Bitcoin Cash is widely used for payments, remittances, merchant transactions, and new applications built directly on its chain.

Why Bitcoin Cash Was Created

The Bitcoin Cash fork happened because of a fundamental question:

Should Bitcoin scale directly on-chain?

From 2015 to 2017, Bitcoin’s limited block size (1 MB) caused:

• Network congestion
• Unpredictably high fees
• Slower confirmation times during peak demand
• Reduced ability to function as “everyday money”

Some developers, entrepreneurs, and early Bitcoin advocates - including Roger Ver, one of the earliest investors and evangelists of Bitcoin - supported increasing block capacity to keep Bitcoin fast and inexpensive to use.

When consensus was not reached, the community split. BCH adopted larger blocks, enabling far more on-chain transaction throughput.

How Bitcoin Cash Works

Blockchain Architecture

Bitcoin Cash uses the same fundamental architecture as Bitcoin:

• Proof-of-Work (PoW) consensus
• SHA-256 mining algorithm
• 21 million fixed supply
• ~10 minute block time
• Halving every ~4 years

These parameters preserve Bitcoin’s monetary properties while enabling BCH to follow a different path in terms of scaling.

Block Size and Throughput

The defining feature of BCH is its 32 MB block size limit, far larger than Bitcoin’s ~1 MB base block.

Larger blocks mean:

• More transactions per block
• Lower fees, even during high demand
• Faster confirmations
• Higher throughput (hundreds of transactions per second in practice)

This allows BCH to function as everyday digital cash without relying on secondary networks.

Transaction Fees

Fees on Bitcoin Cash are typically fractions of a cent. Even during periods of heavy use, fees remain extremely low due to ample block space.

For example:

• Sending $10 to a friend → ~$0.0005 fee
• Paying a merchant → typically under one cent
• Cross-border transfer → still under a cent

This fee environment is essential for micro-transactions, tipping, gaming, and remittances.

CashTokens: Extending Bitcoin Cash Beyond Payments

In 2023, Bitcoin Cash activated one of the most significant upgrades in its history: CashTokens.

CashTokens allow the BCH blockchain to support:

• Fungible tokens
• Non-fungible tokens (NFT-like assets)
• On-chain logic for decentralized applications

But unlike many contract-heavy blockchains, CashTokens preserve efficiency by avoiding global state bloat, keeping BCH:

• Scalable
• Lightweight
• Affordable
• Easy to run at home

CashTokens expand BCH’s utility into areas such as on-chain trading, stablecoins, loyalty programs, digital collectibles, and permissionless services.

Privacy on Bitcoin Cash: CashShuffle and CashFusion

Bitcoin Cash is a public ledger, but users have access to voluntary privacy tools:

CashShuffle

A coin-mixing protocol that groups multiple users’ transactions and redistributes them so no single input can be tied clearly to an output.

CashFusion

A more advanced privacy system using multi-party transaction “fusions” that make deterministic tracing extremely difficult. Unlike mixers that rely on custodial processes, CashFusion never takes possession of user funds. It simply restructures transactions cooperatively.

Privacy tools on BCH do not alter consensus rules - they operate at the wallet layer, keeping the base protocol simple and robust.

Real-World Use Cases

Everyday Payments

BCH is used globally for retail purchases, utility payments, e-commerce, and person-to-person transactions. Low fees make it suitable for any amount - from micropayments to high-value transfers.

Remittances

Cross-border payments using BCH are:

• Faster than bank transfers
• Cheaper than traditional remittance services
• Accessible globally

Fees rarely exceed a cent, making BCH practical for families sending money abroad.

Merchant Adoption

Thousands of merchants support BCH via:

• Bitcoin.com Wallet’s built-in merchant tools
• BitPay
• CoinPayments
• GoCrypto
• Paytaca integrations

QR-based payments make checkout seamless.

Micropayments and Tipping

Because fees are negligible, BCH is used in:

• Online tipping
• Creator platforms
• Chat integrations
• Gaming economies
• Pay-per-article content systems

On-Chain Apps (via CashTokens)

Developers build services such as:

• Decentralized exchanges
• Staking/earn applications
• Tokenized assets
• Voucher and coupon systems
• Community reward programs

These run directly on the BCH blockchain without requiring a high-fee virtual machine.

Security and Mining

Bitcoin Cash retains Bitcoin’s proven security model:

Proof-of-Work

Miners compete to solve cryptographic puzzles that validate transactions and secure the network. This requires real economic cost, making attacks extremely expensive.

SHA-256

BCH shares the mining algorithm with Bitcoin, meaning miners can choose which chain to mine depending on profitability.

Decentralized Mining Ecosystem

Hashrate is distributed across multiple mining pools globally. This decentralization protects the network from unilateral control or censorship.

Bitcoin Cash vs Bitcoin: Key Differences

Below is a direct comparison of the two chains as of 2025:

Both networks share the same monetary foundation but pursue different philosophies.

Historical Forks of Bitcoin Cash

Bitcoin Cash has its own fork history:

2018: BCH → Bitcoin SV (BSV)

A disagreement over block size policies and network direction created a split. Bitcoin Cash ABC remained “Bitcoin Cash,” while Bitcoin SV became its own chain.

2020: Bitcoin ABC Hard Fork

BCH split again due to disagreements over funding mechanisms. The community overwhelmingly supported Bitcoin Cash Node (BCHN), which became the canonical Bitcoin Cash chain.

These events reinforced BCH’s commitment to decentralized, community-driven governance.

Governance and Upgrades

Bitcoin Cash maintains a predictable upgrade schedule, generally once per year. Upgrades are coordinated through:

• Open discussion
• Developer collaboration
• Miner and node operator consensus

This process ensures upgrades are deliberate, stable, and aligned with user needs.

Recent upgrade themes include:

• Validation efficiency
• CashTokens enhancement
• Script improvements
• Scaling and resource management
• Usability refinements

Future Outlook

Bitcoin Cash’s long-term trajectory is centered around:

• Global payments
• Merchant adoption
• Low-fee transaction reliability
• Privacy tools
• New tokenized economies
• On-chain applications through CashTokens
• Scalable infrastructure without sacrificing decentralization

As of 2025, the BCH ecosystem continues to develop - from the growth of CashTokens-based platforms to expanding merchant networks, wallet innovations, and ongoing upgrades aimed at strengthening BCH as a global digital cash system.

How to Store, Buy, and Use Bitcoin Cash

Wallets

Bitcoin Cash is supported by:

• Bitcoin.com Wallet (recommended)
• Ledger
• Trezor
• Electrum Cash
• Electron Cash
• Paytaca

Self-custodial wallets are ideal for users who want full control of their keys.

Buying BCH

You can buy BCH through:

• The Bitcoin.com Wallet
• Most global exchanges
• Local P2P platforms
• Merchant and gift card platforms

Using BCH

Common uses include:

• Paying merchants
• Sending funds internationally
• Online shopping
• Gaming
• Tipping
• CashTokens applications

To learn more, explore our guides on how to buy Bitcoin Cash, how to sell Bitcoin Cash, and how to use Bitcoin Cash, as well as our business resources on how your business can start accepting Bitcoin Cash and the benefits of accepting Bitcoin Cash for merchants.

Conclusion

Bitcoin Cash was created to preserve one of the most important ideas in the history of digital money: that anyone, anywhere, should be able to send value instantly, affordably, and without permission. In the years since its launch, BCH has remained committed to this mission while evolving far beyond its origins as a Bitcoin fork. The network now supports large-scale on-chain payments, near-zero transaction fees, privacy-enhancing tools, and a growing tokenized economy powered by CashTokens.

As of 2025, Bitcoin Cash continues to serve millions of users worldwide who rely on it for remittances, merchant payments, micro-transactions, and peer-to-peer transfers. Its development remains decentralized and community-driven, with a clear focus on scalability, efficiency, and long-term reliability.

For users and developers who believe in a future where cryptocurrency functions as practical money - not just a store of value - Bitcoin Cash remains one of the strongest and most mature implementations of that vision. Whether you are exploring digital payments, building new on-chain applications, or simply looking for a fast and inexpensive way to move money globally, BCH offers a powerful, proven, and accessible alternative.

FAQ

What is the main goal of Bitcoin Cash?
To remain true to the original vision of Bitcoin as “peer-to-peer electronic cash.” BCH focuses on enabling fast, affordable payments that anyone can access.

How did Bitcoin Cash originate?
BCH was created on August 1, 2017, after years of debate over Bitcoin's scalability. Supporters of larger blocks initiated a hard fork to maintain low fees and high throughput.

Who is behind Bitcoin Cash?
Bitcoin Cash is a decentralized, open-source project maintained by multiple independent development teams and supported globally by entrepreneurs, developers, miners, and users. Roger Ver, an early Bitcoin investor, has long been one of its most vocal advocates.

What consensus mechanism does BCH use?
Bitcoin Cash uses Proof-of-Work (PoW) with the SHA-256 mining algorithm.

What is the supply of Bitcoin Cash?
The maximum supply is 21 million BCH. As of 2025, over 19 million BCH are in circulation.

Can Bitcoin Cash be used for everyday payments?
Yes. BCH is accepted by thousands of merchants and is ideal for everyday spending because fees remain extremely low.

What are CashTokens?
CashTokens, launched in 2023, allow BCH to support fungible tokens, NFTs, and on-chain applications while remaining scalable and efficient.

What privacy tools exist for BCH users?
CashShuffle and CashFusion are popular tools that provide enhanced privacy by obscuring transaction flows without compromising the network.

Can I mine Bitcoin Cash?
Yes. BCH can be mined using SHA-256 ASIC hardware, similar to Bitcoin.

What is the future of Bitcoin Cash?
The roadmap focuses on global payments, scalability, privacy, and small contract functionality through CashTokens. Development remains active across multiple independent teams.