What is Bitcoin Cash?
Bitcoin cash is designed with transactions in mind, much like traditional cash. Its primary role is as a Peer-to-Peer Electronic Cash System. This electronic cash system was more inline with Satoshi Nakamoto’s original vision for Bitcoin. Despite this due to its slow transaction time and small block size, Bitcoin has been unable to compete as a transactional cash system. As a result of this Bitcoin Cash was formed in August 2017 as a hard fork with Bitcoin.
Like all other cryptocurrencies, Bitcoin Cash operates using decentralised blockchain technology. Its decentralised nature means that no individual or central body controls Bitcoin Cash, it is governed and developed by multiple teams of developers across the world.
Bitcoin Cash was created due to concerns of the overall scalability of Bitcoin’s network. As a result of this Bitcoin Cash was hard forked from Bitcoin.
One of the main drawbacks with Bitcoin is its slow transaction time, this ultimately means that it is unable to compete with traditional payment processors like Visa & Mastercard. Visa & Mastercard process transactions almost instantly; whereas Bitcoin can sometimes take days for a transaction to go through. Bitcoin Cash aims to combat this flaw with transaction fees that are incredibly cheap with fast transaction times. In order to increase the speed of BCH transactions they increased their block size from the 8MB that Bitcoin used to 32MB (a 4x increase on Bitcoin).
Benefits for Customers & Merchants
As a peer-to-peer electronic cash system, Bitcoin Cash has numerous benefits for both customers and merchants.
By using Bitcoin Cash customers can send money anywhere in the world at almost zero cost, gives them full control of their money, benefit from a fixed supply of BCH – making it a scarce asset that appreciates in value, make transactions anonymously unlike traditional bank transactions and enjoy special discounts offered by merchants who accept BCH.
Merchants using Bitcoin Cash can receive purchases from customers for less than a penny in transaction fees, have no chargebacks, benefit from the ever-growing community of BCH users that mean a larger customer base.
As of the 30th May 2021, each BCH costs $674 and it is ranked 12th highest in terms of market capitalisation with a market cap of $12,645,885,659.
Bitcoin Cash has a maximum token supply of 21 million BCH.
It’s all time high (ATH) price was $4,355.62 on December 20th 2017.
Where Can You Buy Bitcoin Cash?
Due to its age and popularity, Bitcoin Cash is available at the following major cryptocurrency exchanges:
If you enjoyed our What Is Bitcoin Cash guide and are now interested in investing in Bitcoin Cash, have a look at our Best Crypto Exchanges page for more information.