What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) emerged from a split in the Bitcoin network in 2017. As transaction demand grew, Bitcoin blocks were filling up, causing delays and rising fees. One segment of the community proposed fixing this by raising the block size limit directly, while another favored keeping the base layer unchanged and building solutions on top. The disagreement led to a permanent chain split, giving rise to BCH.
How does Bitcoin Cash approach scaling?
BCH’s core strategy is to fit more transactions into each block. The block size limit was initially raised from 1 MB to 8 MB, later expanded to 32 MB, and in 2024 moved to an adaptive algorithm (ABLA) that adjusts automatically based on demand. By increasing the number of transactions per block, the network avoids congestion and keeps typical fees under a cent. Unlike Bitcoin, which relies on off-chain layers for scaling, BCH tackles the issue directly within the protocol itself.
Supply structure and security model of BCH
Bitcoin Cash mirrors Bitcoin’s monetary policy: its maximum supply is capped at 21 million, the block reward halves roughly every four years, and the most recent halving took place in April 2024. Mining also uses the same SHA-256 algorithm, allowing hardware to switch between the two networks. While this shared pool contributes to BCH’s security, the relatively small share of total hash power compared to Bitcoin lowers the theoretical cost of an attack and remains a consideration for the network.
Factors to consider when evaluating BCH
BCH offers a network built for low-cost on-chain payments, but the growing dominance of stablecoins in everyday transactions may limit the appeal of spending a volatile asset. The price is also highly sensitive to market cycles — sharp rallies can be followed by steep corrections. Additionally, the project’s history includes internal splits in 2018 and 2020, which point to lingering governance challenges.
