Bitcoin Cash FAQ

Learn more about Bitcoin Cash (BCH) and cryptocurrency with these common question and answers. Learn how Bitcoin Cash works as the best form of money and find helpful explanations in this section. Try our Bitcoin Cash Ai chat bot for an interactive learning experience.

What is Bitcoin?
Bitcoin is just an idea for a decentralized digital currency that eliminates the need for central authorities like banks and governments. In 2008 when Bitcoin was introduced to the world in the Bitcoin whitepaper by Satoshi Nakamoto, the idea was to have a decentralized electronic cash system. As time went on, ideas changed, and later Bitcoin changed with it. You can have multiple implementations of Bitcoin the idea, with different ecosystems, but with different paths forward.
What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is the upgraded version of Bitcoin, which dates back to the Genesis Block in 2009, sharing the same blockchain from day one. Bitcoin Cash addresses all the scalability issues that Bitcoin (BTC) has. Bitcoin Cash (BCH) continues on with the original idea of a peer-to-peer digital cash system that is decentralized and does not rely on third-parties. It aims to become sound global money with fast and secure payments, micro-fees, privacy layers, high transaction capacity, bigger blocks, while still keeping the original attributes of Bitcoin like a 21 million coin supply limit and proof-of-work.
What's the difference between Bitcoin Cash (BCH) and Bitcoin (BTC)?
Bitcoin changed significantly in 2017 when there was an upgrade to the Bitcoin protocol which caused a chain-split. The result was two-Bitcoins, both represent an implementation of Bitcoin the idea, but both with two different paths forward. The non-upgraded version or legacy implementation kept the name and ticker Bitcoin (BTC), and is now used as a settlement layer for offchain transactions, with the idea and focus to be "digital gold." The upgraded version or newer implementation has the ticker and name Bitcoin Cash (BCH), and is upgraded with onchain scaling and merchant adoption while being focused on the original idea of "digital cash" for the world.
When was Bitcoin Cash (BCH) created and what is the history behind it?
In the year 2017 when Bitcoin had a chain-split, Bitcoin the idea changed into two implementations: Bitcoin Cash (BCH) and Bitcoin (BTC). Bitcoin Cash (BCH) is the upgraded working version of Bitcoin, which dates back to the Genesis Block in 2009, sharing the same blockchain. Bitcoin Cash was created in 2008 with the invention of Bitcoin by Satoshi Nakamoto, the blockchain began in January 2009, and the upgraded version activated in August 2017. The history is a bit complex, but it boils down to the chain-split in 2017, where many people wanted to upgrade Bitcoin to increase the block size to allow for adoption and growth, and some wanted to keep the block size small and not upgrade while focusing on layer two solutions like the Lightning Network. When there was no consensus found on to upgrade or not, the chain-split occured leaving us with two different versions of Bitcoin.
What makes Bitcoin Cash (BCH) better and what are it's advantages?
Bitcoin Cash is the better upgraded version of Bitcoin for many reasons, but just to name a few key benefits, Bitcoin Cash has:

  • Low fees making it affordable worldwide. Fees are typically under a penny per transaction.
  • Fast and borderless transactions. Transactions are near-instant and global.
  • Onchain scaling with an adaptable block size. The block size is adaptable for global adoption.
  • Decentralized development and is open source. There are multiple development teams working on consensus and all are open source.
  • Smart contracts, DeFi, and CashTokens. Bitcoin Cash has introduced DeFi protocols to make it more robust and attractive.
  • Peer-to-peer protocol with no custodians needed. Bitcoin Cash doesn't need centralized companies on layer two.
  • Secure transaction layer with 0-confirmations. Bitcoin Cash uses proof-of-work (SHA-256) mining.
  • Immutable transactions that cannot be reversed with proof-of-work mining, which is great for merchants with no charge-backs.
  • Transactions that are censorship resistant. Since Bitcoin Cash is properly decentralized, transactions cannot be censored or blocked.
  • Limited supply of only 21 million coins. Bitcoin Cash has a fixed supply limit so it's scarce and has a sound monetary policy.
How does Bitcoin Cash work and what are the technical aspects of it?
Bitcoin Cash is a peer-to-peer transaction network, where participants can come and go at will and use the network to transfer value to anyone anywhere in the world instantly and it costs less than a penny. Some of the technical aspects of Bitcoin Cash are that it uses a proof-of-work consensus algorithm called SHA-256, where miners participate in a lottery, guessing the correct block hash and the winner of the guess is rewarded with fees and block rewards. Bitcoin Cash also has larger block sizes, with an adaptible block size introduced in 2024. It has a difficulty adjustment algorithm called DAA, which adjusts the difficulty of mining every 600 seconds, based on the amount of computing power on the network. This helps to maintain a stable block time of 10 minutes. Bitcoin Cash also supports several features such as OP_RETURN, which allows embedding data in transactions, and Schnorr signatures, which improve privacy and scalability. Bitcoin Cash also has a CHIP process, which stands for CasH Improvement Proposal, which is how new features get added to the protocol.
What are Bitcoin Cash CHIPs and protocol improvement guidelines?
CHIP stands for CasH Improvement Proposal. It is a public document that outlines a proposed change for Bitcoin Cash (BCH). It includes descriptions of the proposal itself, elaboration of its risk/reward, and any relevant technical aspects. Authoring a CHIP is only one of many step towards getting a proposal into Bitcoin Cash. There are Informational CHIPs, Operational CHIPs, and Technical CHIPs. You can read more about the process and guidelines here. Additionally, a list of Cash Improvement Proposals can be found here.
How does Bitcoin Cash handle scalability, security, and privacy issues?
Bitcoin Cash handles scalability with onchain scaling as the primary focus. Using bigger blocks, and now, adaptible block sizes, Bitcoin Cash has been able to onboard more users to the blockchain based on demand. It supports Schnorr signatures, which improve privacy and scalability by allowing multiple signatures to be aggregated into one. In terms of privacy, Bitcoin Cash also has CashFusion. CashFusion is a fully decentralized privacy protocol built on top of Bitcoin Cash that allows anyone to create multi-party transactions with other network participants. Bitcoin Cash has a decentralized network of nodes and developer groups that prevents a single point of failure and makes it resilient against attacks and censorship.
How many transactions per second (TPS) can Bitcoin Cash do?
At present, Bitcoin Cash (BCH) achieves a minimum of 128 transactions per second (TPS), supported by a 32 MB base block size. On May 15, 2024 BCH implemented an innovative scaling solution known as ABLA (Adaptive Blocksize Limit Algorithm), which allows for an unlimited number of TPS. While the notion of infinite TPS is theoretically possible, it’s more conceptual than practical. Looking ahead, it’s anticipated that BCH could consistently handle around 700 TPS, with the potential to reach up to 1400 TPS as the technology matures. In contrast, Bitcoin (BTC) can only do 7 TPS, Ethereum (ETH) can do 30 TPS, and Dogecoin (DOGE) can do 40 TPS. You can read more about ABLA here.
What is the Bitcoin Cash blocksize and adaptive blocksize limit algorithm?
The Bitcoin Cash blocksize limit is 32 MB, which is the maximum possible limit set for the protocol. However in 2024, Bitcoin Cash introduced an upgrade called "ABLA" which stands for Adaptive Blocksize Limit Algorithm. The new changes allow for BCH to have an observed limit based on demand. There is no upper bound to the blocksize and it will increase and decrease according to real observed network traffic. The maximum continual increase is 2x per year if all blocks are 100% full, but under realistic conditions this is unlikely. ABLA also has a bonus amount of "surge capacity" which allows blocks to increase up to 4x in a year following a lengthy period without increases. By creating an adaptible limit, Bitcoin Cash is future-proofing itself so that it can scale to the world for a global economy. You can read more about this change here.
Why did Bitcoin Cash raise the block size in the first place?
It all started in October 2010, when the creator of Bitcoin, Satoshi Nakamoto, wrote in the Bitcoin forum about how the block size can be raised to give way for more users and expanding network transactions for global adoption. Satoshi wrote that the upgrade can be phased in, like this:
if (blocknumber > 115000) maxblocksize = largerlimit
He said the upgrade can be activated in future versions of Bitcoin, saying "so by the time it reaches that block number and goes into effect, the older versions that don't have it are already obsolete. When we're near the cutoff block number, I can put an alert to old versions to make sure they know they have to upgrade." Then later around the year 2014-2015, people began discussions about reaching the limit soon and how Bitcoin needs to upgrade, which led to the upgrade activation and chain-split in 2017.
How can I buy, store, and use Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that is designed to be used as a fast and cheap payment method while retaining key features of blockchains, as it is decentralized, secure, and scalable. To begin using Bitcoin Cash (BCH), you have to first of course buy it. You can buy, trade, or invest in Bitcoin Cash at an exchange like Coinbase, Gemini, and Kraken. You can buy Bitcoin Cash here on Also, here is a list of exchanges. Exchanges should be treated as only a place to buy or sell cryptocurrencies. It's never recommended to hold your Bitcoin Cash on exchanges for long periods of time. There is a saying in cryptocurrency that goes, "Not your keys, not your coins." It means by holding your coins on an exchange, they have ownership over them until you take ownership in your own wallet. This leads to the second step, which is to download a wallet. By downloading a wallet, you can begin to custody your Bitcoin Cash yourself and take full control over them. Here is a list of wallets you can use to store your Bitcoin Cash. Lastly, to use your BCH, you will want to have them in your wallet and then use them at merchants that accept Bitcoin Cash as a payment method. Here is a map of Bitcoin Cash merchants across the world that accept it as a payment method.
What is the current price and market cap of Bitcoin Cash?
The price is the current amount of fiat currency or another cryptocurrency that one unit of the coin or token is worth. The market cap is the total market value of all the circulating units of Bitcoin Cash. It is calculated by multiplying the price by the circulating supply. The price and market cap of Bitcoin Cash can change over time, depending on factors such as supply and demand, innovation, competition, regulation, and sentiment. To check the current price of Bitcoin Cash and use a price calculator and see other stats, check here.
What are some of the best resources and platforms to learn more about Bitcoin Cash?
There are many online resources available, but we have compiled some of the best ones here.
Is Bitcoin Cash (BCH) a "cheap immitation" of Bitcoin (BTC)?
No, Bitcoin Cash (BCH) is not a "cheap immitation" and is not a scam. Bitcoin Cash is a legitimate cryptocurrency. This myth stems from the fact that Bitcoin Cash shares a name and a history with Bitcoin. However, Bitcoin Cash is a legitimate cryptocurrency with its own blockchain and community. It dates back to the Bitcoin Genesis block of 2009, as it shares the same history and transactions before 2017. In 2017 when Bitcoin had a chain-split, we were left with two options: Bitcoin (BTC) the legacy non-upgraded version of Bitcoin, and the newer upgraded version of Bitcoin now called Bitcoin Cash (BCH).
Is Bitcoin Cash centralized?
Some critics argue that Bitcoin Cash (BCH) is more centralized than Bitcoin (BTC) because it has a larger block size, which they believe makes it more difficult for individual users to run full nodes. However, Bitcoin Cash users maintain that the larger block size is necessary to scale the network and that there are still many full nodes operating on the network. Additionally the costs of running a full node with bigger blocks is negligible at best, as the cost of hardware and bandwidth continue to go down and become more accessible. However, the costs of using Bitcoin (BTC) continues to rise, out-pricing most of the world. Some try to argue that Bitcoin Cash is more centralized in development, however this is also false, as Bitcoin Cash has six different development teams that work together toward consensus. Bitcoin (BTC) only has one development team called "Bitcoin Core."
Why are Bitcoin Cash (BCH) fees much lower than Bitcoin (BTC) fees?
The Bitcoin (BTC) network has a 1MB limit on the size of each block, which restricts the number of transactions that can be processed. This causes the BTC fees to increase significantly when the network is busy, as users compete to get their transactions confirmed faster. This was not the original design of BTC, but a modification made by core developers who wanted to turn BTC into a settlement system. Bitcoin Cash (BCH), on the other hand, has no such limit on the block size, which enables more transactions to be included in each block. BCH has also implemented onchain scaling, which provides more room for growth and lower fees, while preserving the original Bitcoin features. Typically BCH fees are less than a penny while BTC fees can spike above $50 per transaction.
Is Bitcoin Cash vulnerable to a 51% attack?
No, it is not. A 51% attack on Bitcoin Cash (BCH) is unlikely because it would be costly and harmful for miners. They would have to switch from mining BTC to BCH, which uses the same algorithm, and lose money while simultaneously spending money to maintain the attack. They would also damage their own investments and the trust in the crypto market. Bitcoin Cash has a feature that prevents reorganizing more than 10 blocks, which makes it harder for attackers to rewrite the history. Moreover, in 2018, Bitcoin Cash miners defended the chain from a rival fork-attack called BSV, by diverting hash power from BTC to BCH. This shows that Bitcoin Cash has a loyal and strong miner community. Therefore, while any blockchain can be attacked, Bitcoin Cash has no strong incentives for attackers.
Why do people say the "market has decided" implying Bitcoin Cash isn't favored by the public?
The "market has decided" is an easy scapegoat for people to say when they try to say Bitcoin Cash isn't favored for one reason or another. The market is not a single entity that makes final decisions. It is a complex system of interactions, influences, and uncertainties that constantly change over time. What seems like a favorable outcome today may not be the same tomorrow, or next week, or next year. The market is always fluid, and so are the opportunities and risks that come with it. To say the market is complete and finalized today when it can change in the future is premature and unwise.
What and when is the Bitcoin Cash halving?
Every four years the Bitcoin Cash network undergoes a process called the halving (also known as the halvening). This means that the amount of Bitcoin Cash that miners receive for validating transactions is reduced by 50%. You can read more about the halving event every four years and when it actually happens on the Bitcoin Cash Halving page.
What is a hard fork, what is a soft fork, and what are the differences?
A hard fork and a soft fork are both changes to the rules of a blockchain network, but they have different effects on its compatibility. Here are some key differences:

A hard fork is a non-backwards compatible change that creates new rules to the blockchain protocol. For example with Bitcoin Cash, the changes were upgrades to the block size, and because the new rules were incompatible with the old rules, it was a hard fork that nodes which didn't upgrade stayed on the old blockchain version and nodes that did upgrade were on the new blockchain version. Nodes that do not upgrade to the new version will not be able to validate new blocks and transactions on the new chain. A hard fork can result in a chain split, where both the old and new blockchains coexist independently, such as with Bitcoin Cash (BCH) and Bitcoin (BTC).

A soft fork is a backward-compatible change that tightens the rules of the blockchain protocol by adding new changes and not removing old rules. Nodes that do not upgrade to the new version will still be able to validate new blocks and transactions on the old chain. A soft fork does not create a new blockchain, but it can cause a temporary chain split if nodes do not follow the new protocol rules. An example of a soft fork is SegWit in Bitcoin (BTC), which removed signature data from the blocks to increase the transaction throughput.

In a well-written blog post by Ethereum founder Vitalik Buterin, he says that soft forks are coercive, and hard forks are not. Hard forks are opt-in, while users of a soft fork are forced into the protocol changes whether they like it or not. He writes, "In order for a user to join a hard forked chain, they must personally install the software package that implements the fork rules, and the set of users that disagrees with a rule change even more strongly than they value network effects can theoretically simply stay on the old chain. In the case of soft forks, however, if the fork succeeds the unforked chain does not exist. Hence, soft forks clearly institutionally favor coercion over secession, whereas hard forks have the opposite bias."
Will Bitcoin Cash (BCH) and Bitcoin (BTC) ever merge back together?
The possibility of Bitcoin Cash (BCH) and Bitcoin (BTC) merging back together is highly unlikely. Since the chain-split in 2017, the two cryptocurrencies now have different protocols and goals. While they both share the same origins, they have taken seperate paths forward. There are no current plans for BCH to merge with BTC as they are separate and independent cryptocurrencies with their own unique features and ecosystems.
If Bitcoin (BTC) is trying to be digital gold, doesn't that make it more valuable than Bitcoin Cash (BCH)?
Bitcoin (BTC) aspires to be the digital equivalent of gold, which could imply a higher valuation compared to Bitcoin Cash (BCH), whose aim is to serve as a global digital currency rather than a store of value like gold. Considering the global gold market is valued at around $10 trillion, and the M1 money supply — which represents the worldwide cash market — is over $100 trillion, the latter is substantially larger, by a factor of ten. Specifically, the M1 money supply amounts to $6 trillion in the USA, $12 trillion in the EU, $9 trillion in Japan, $8 trillion in China, and $3 trillion in the UK. Given that the cash market is ten times the size of the gold market, Bitcoin Cash has a greater potential for widespread adoption. Despite Bitcoin Cash processing 120% of the transactions that Bitcoin handles, its market value is just 1% of Bitcoin’s current market valuation, suggesting significant growth potential.
Why choose Bitcoin Cash instead of another cryptocurrency?
Bitcoin Cash (BCH) distinguishes itself in the cryptocurrency landscape in various ways. For example with its anonymous founder, Satoshi Nakamoto, who has been inactive since 2011, preventing any centralization of power or influence. This is in stark contrast to other cryptocurrencies, which are often closely associated with their founders. BCH’s fair distribution during its inception, before the value of cryptocurrencies was recognized, ensures a more equitable spread among early supporters. The Lindy effect suggests that Bitcoin Cash longevity will continue to foster trust, a feat newer coins cannot match. Additionally, BCH’s association with the Bitcoin brand offers a trust advantage. Finally, sharing the SHA256 mining algorithm with Bitcoin means BCH can tap into an extensive, secure mining infrastructure, further solidifying its position in the market.

Bitcoin Cash (BCH) boasts a resilient community that has weathered multiple contentious forks, reflecting its members’ dedication to the currency’s survival and vision. This unbreakable spirit is complemented by a decentralized development ethos, where the community has repeatedly demonstrated its ability to prioritize the currency’s usability over the influence of any single developer group. BCH’s scalability ambitions are rooted in Satoshi Nakamoto’s original design, aiming for global usability while maintaining efficiency and decentralization. The coin also resonates with disenfranchised early Bitcoin adopters, who are drawn to its adherence to the original peer-to-peer electronic cash concept. This, coupled with the controversy surrounding its history and the strong emotions it evokes, both positive and negative, underscores Bitcoin Cash’s unique position as a cryptocurrency that continues to challenge the status quo and captivate a dedicated following.
What are 0-confirmation transactions on Bitcoin Cash?
Bitcoin Cash (BCH) transactions are secure due to the network's "first seen relay policy," which prioritizes the first transaction seen by nodes, preventing double spends. Transactions propagate quickly, akin to instant messaging, making fraud attempts complex and impractical. Over 99.99% of BCH transactions are confirmed in the next block, with rare backlogs. While 0-confirmation transactions are reliable, acceptance as legitimate is at the discretion of the recipient, who assesses the risk based on their tolerance, despite the community's efforts to promote instant transaction security.

Bitcoin Cash has enhanced transaction security with "Double Spend Proofs," reducing fraud risk during the critical first seconds of transaction propagation. Nodes alert the network of any conflicts, allowing for quick fraud detection and response. While large miners don't typically engage in fraud due to high costs and risks, cryptocurrency exchanges remain cautious, often requiring multiple confirmations. Exchanges, dealing with numerous cryptocurrencies, may not adopt BCH-specific features like Double Spend Proofs, preferring a uniform security approach. Users are advised to minimize exchange interactions to maintain control over their BCH and avoid delays.
What are CashTokens?
CashTokens bring smart contracts to Bitcoin Cash all on a decentralized scalable layer one protocol. They are designed to be counterfeit-proof, ensuring the authenticity of each token. This robust security feature is maintained across contracts and wallets, which can effortlessly confirm a token’s legitimacy. This safeguards them from inadvertent destruction by software not designed to recognize tokens, thus enhancing their reliability.

CashTokens introduces two low-level token primitives: fungible tokens and non-fungible tokens (NFTs). Token primitives refer to the fundamental components that enable the creation and management of tokens on the Bitcoin Cash blockchain. The introduction of these token primitives on Bitcoin Cash allows for decentralized applications (dapps) comparable to those on platforms like Ethereum and Solana, but with a significant efficiency advantage in transaction and block validation.
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