Log in

Simply Explained

Simply Explained: Bitcoin Cash (BCH)

Updated: Aug 31, 2024
Published: May 2, 2022
0
Share:

In 2017, the Bitcoin community was split over concerns about Bitcoin’s scalability. Some believed Bitcoin should continue as intended by Satoshi Nakamoto, and others believed that for Bitcoin to succeed, it needed to resolve some of its glaring scalability issues.

Post Feature Image

This resulted in something called a hard fork. The technical definition for a hard fork is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. 

A hard fork requires all nodes or users to upgrade to the latest version of the protocol software. To understand it simply, picture a fork in the road. The people who believed that things should change decided to take a turn and move along a different path. This path is what we now call Bitcoin Cash (BCH).

Bitcoin Cash (BCH)

Bitcoin Cash, as a new cryptocurrency, was heralded as the continuation of the Bitcoin project as peer-to-peer electronic cash. The Bitcoin holders at the time of the fork, which happened at block 478,558, automatically became owners of Bitcoin Cash. This peer-to-peer system is attempting to resolve the scalability concerns those early Bitcoin users had experienced. It aims to become sound money used for fast payments whilst having tiny fees, privacy, and high transaction capacity.

Just like Bitcoin, Bitcoin Cash requires no trusted third parties and no central bank. It is designed to cut out the middleman. Transactions cannot be censored by governments or other centralized corporations. Funds can’t be seized or frozen by any centralised force because the Bitcoin Cash network is decentralised.

The tokenomics of BCH are also pretty much identical to those of BTC, both sharing the same halving schedule, total max supply, and current circulating supply.

The key differences between Bitcoin and Bitcoin Cash

Most Bitcoin enthusiasts universally accept the idea that Bitcoin's best use case and most attractive value proposition is that it is a store of wealth. This means it is something people hold over time, and it should grow in value. The most common store of value is gold.

The thing the “hard-forkers” wanted was to innovate past this and give Bitcoin some utility. They hoped to make bitcoin usable like cash. You can’t go out to a restaurant and tip someone in gold, and it’s not feasible to do so with Bitcoin either. The processing time for transactions and the fees involved made it impractical.

Why does block size matter?

Bitcoin Cash solves this problem. Bitcoin has something called a “block size” of 1 MB. This just refers to the amount of data a block holds. The more data a block can hold, the more transactions it can process.

In the same way, your 8 MB PS2 memory card could only store so many safe states, and the 1 MB Bitcoin block size could only process so many transactions.

Bitcoin Cash initially saw a block size increase to 8 MB and now stands at around 32 MB. At its initial point, BCH can process 32 times the number of transactions per second than Bitcoin can. This means you can expect payments to process faster, making it usable for day-to-day payments.

Not only does the block size affect speed, but it also affects affordability. The reason for this is that Bitcoin is more popular. More transactions are requested on the network, fewer transactions can fit on each block, and users are willing to pay more to get their transaction processed. Hence the higher cost.

Think of Bitcoin Cash as a little-known restaurant with lots of seating. Compared to Bitcoin, a small, popular staple, lots of diners are trying to get a table. The more demand, the higher the price.

If Bitcoin Cash has the perks of Bitcoin, plus utility, why isn’t it more popular?

A looming potential issue with the larger block is that security could be compromised more easily compared to the Bitcoin network. The general popularity of Bitcoin also means users of BCH may find liquidity and usability are actually lower than that of Bitcoin.

There are also projects built from scratch that are dedicated to doing exactly what BCH is attempting to do but are arguably doing so better. There are projects out there with faster transactions, lower fees, and in terms of day-to-day purchases, there’s a reason we don’t typically buy things with stocks and other volatile assets. If you believe BCH is going to 1X, how can you justify spending $5 of BCH on a carton of milk? You’re basically saying, “I’m willing to spend $50 on that milk carton.”.

We highly encourage you to read our pieces on Litecoin, and stablecoins to understand what alternatives to BCH are out there and how they stand up to one another.

And, for Cryptonary's transparent opinion on BCH, access the Ratings Guide here.

Our Top Picks:

DOGWIFHAT

DOGWIFHAT

120,650%

SPX6900

SPX6900

17,000%

POPCAT

POPCAT

66,567%

PENDLE

PENDLE

5,002%

SOLANA

SOLANA

2,500%

HYPE

HYPE

1,740%

Don’t miss our next 100X

Trusted by 230K+ investors

Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

100% Success Money Back Guarantee

If our approach doesn’t outperform the overall crypto market during your subscription, we’ll give you a full refund of your membership. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.

Terms & Conditions apply

Star

Trusted by 300,000+ traders

Take your next step towards crypto success

Save 50%

$799/year

Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.

VisaCardImageMsCardImageCoinbaseCardImageSolanaCardImage

For your security, all orders are processed on a secured server.

What’s included in Pro:

  • Success Guarantee, if we don’t outperform the market, you get 100% back, no questions asked

  • 24/7 access to experts with 50+ years’ experience

  • All of our top token picks for 2025

  • Our latest memecoins pick with 50X potential

  • On hand technical analysis on any token of your choice

  • Weekly livestreams & ask us anything with the team

  • Daily insights on Macro, Mechanics, and On-chain

  • Curated list of top upcoming airdrops (free money)

Our track record speaks for itself

With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.

/images/advertorial/corpcomm3.webp
/images/advertorial/corpcomm4.webp
/images/advertorial/corpcomm5.webp

Frequently Asked Questions

Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.

No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.

Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.

We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.

Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.

Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.

If our approach to the market doesn’t beat the overall crypto market during your subscription, we’ll give you a full refund of your membership fee. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.

Recommended from Cryptonary
BTC, ETH and More: Bullish Breakouts and Critical Resistance Tests
PRO
Market Direction
BTC, ETH and More: Bullish Breakout...The majors broke upside on positive macro news, now testing key resistances. Watch for bullish conti...
8 min read
Oct 27, 2025
This Week's Setup: 27th of October
Market Updates
This Week's Setup: 27th of OctoberIt’s a big week in markets, and you don’t want to miss what’s coming. The Fed meets, Trump and Xi ar...
7 min read
Oct 27, 2025
Time Sensitive: The 4x Market-Neutral Trade Everyone’s Missing
PRO
Research Report
Time Sensitive: The 4x Market-Neutr...Opportunities like this are rare in crypto. Most launches are driven by hype or speculation with no ...
11 min read
Oct 27, 2025