Bitcoin remains the world's most popular cryptocurrency, but its 2017 hard fork gave birth to Bitcoin Cash - a new digital asset that sparked ongoing debates in crypto communities. This guide breaks down their technical and functional distinctions.
How Bitcoin Cash Emerged
- Hard Fork Event: On August 1, 2017, Bitcoin blockchain split into two chains
- Automatic Distribution: All Bitcoin holders received equivalent Bitcoin Cash (BCH) amounts
- Independent Development: Bitcoin Cash began operating under new protocol rules post-fork
👉 Discover how top exchanges handle Bitcoin forks
Technical Differences
1. Blockchain Capacity
| Feature | Bitcoin (BTC) | Bitcoin Cash (BCH) |
|---|---|---|
| Block Size | 1MB | 8MB |
| Transactions | 7/sec | 61/sec |
| Approach | SegWit | On-chain scaling |
2. Mining Difficulty Adjustment
- Bitcoin: Static difficulty adjustments every 2016 blocks (~2 weeks)
- Bitcoin Cash: Dynamic difficulty adjustment algorithm (DAA) that responds to network hashpower changes hourly
Functional Differences
Transaction Validation
Both networks:
- Are fully decentralized
- Use Proof-of-Work consensus
- Have ~10 minute block times
Key differentiator:
- Bitcoin Cash processes larger blocks faster due to increased capacity
Market Adoption
Supported By:
- BTC: 100+ top exchanges
- BCH: Select exchanges like Kraken and Binance
Not Supported:
- Coinbase initially withheld BCH trading
- Some wallets delayed BCH integration
Scarcity Factors
- 17 million BCH in circulation vs 19.5 million BTC
- Some BCH remains inaccessible in unsupported wallets
FAQ
Q: Can I spend Bitcoin Cash like regular Bitcoin?
A: Yes, but only on platforms that support BCH transactions. They have separate payment networks.
Q: Which has lower transaction fees?
A: Bitcoin Cash typically maintains lower fees due to larger block capacity.
Q: Is Bitcoin Cash more "bitcoin" than Bitcoin?
A: This remains debated. BCH follows Satoshi's original vision for scaling, while BTC prioritizes layer-2 solutions.
Q: How do I claim Bitcoin Cash from old Bitcoin?
A: If you held BTC before August 1, 2017, you can import those private keys into a BCH-compatible wallet.
👉 Learn secure storage practices for both assets
Future Outlook
While Bitcoin maintains dominance, Bitcoin Cash serves specific use cases:
- Better for microtransactions
- Faster merchant adoption
- Stronger on-chain scaling position
The crypto landscape continues evolving, with both assets playing important but distinct roles in digital finance.