- Bitcoin Cash was created in 2017 as a hard fork from Bitcoin after disagreements over how to address scalability and transaction speed.
- While BCH offers faster, cheaper transactions through larger block sizes, Bitcoin remains more popular due to its security, liquidity, and first-mover advantage.
The cryptocurrency world changed forever in 2017 when a major disagreement over scalability and speed led to the creation of Bitcoin Cash (BCH)—a hard fork from the original Bitcoin (BTC). While the two currencies share a common origin, their philosophies, capabilities, and communities have since taken very different paths.
The Origins of the Divide
Bitcoin, launched in 2009, gained popularity as a decentralized payment system free from government control. But as its user base grew, so did issues with transaction times and fees. Developers introduced a fix called Segregated Witness (SegWit), which aimed to reduce the amount of data processed per block by removing signature data.
However, not everyone agreed with this approach.
In August 2017, a group of miners and developers who were skeptical about SegWit initiated a hard fork. They believed it didn’t align with the original vision set forth by Bitcoin’s mysterious creator, Satoshi Nakamoto. Thus, Bitcoin Cash was born—complete with an increased block size of 8 MB, later raised to 32 MB, to allow faster and cheaper transactions.
Speed vs Popularity
Bitcoin Cash’s larger blocks were designed to speed up transaction processing and reduce fees. In theory, BCH can handle significantly more transactions per second than BTC. Yet, in practice, it rarely processes more than 250,000 transactions daily, compared to Bitcoin’s consistently higher volume.
Bitcoin Cash also has fewer active addresses and a smaller network, making it less secure and less liquid. On May 12, 2024, Bitcoin had over 521,000 active addresses, while BCH had just 23,000.
Is Bitcoin Cash Still Relevant?
Despite its technical advantages, Bitcoin Cash never gained the same traction as its predecessor. Bitcoin retains its dominance due to early adoption, widespread recognition, and its massive market capitalization.
That said, Bitcoin Cash still has a loyal community and offers potential benefits for users focused on lower fees and quicker transaction times. However, its lower trading volume introduces a liquidity risk that could affect investment decisions.
Bitcoin and Bitcoin Cash may share a name and history, but their paths have diverged sharply. If you’re considering investing, your choice depends on whether you prioritize speed and lower fees—or security, popularity, and broader adoption.
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