What is Bitcoin Cash (BCH)?
What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a cryptocurrency that split from Bitcoin in 2017, with the main goal of solving some of the issues encountered by Bitcoin users. Created as a solution to Bitcoin’s scalability limitations, Bitcoin Cash quickly gained popularity thanks to faster transactions and lower fees. If you want to buy or sell Bitcoin Cash (BCH), you can use the Abarai cryptocurrency exchange platform, which provides you with a simple interface and the ability to perform fast transactions without registration for amounts under 5000 RON.
How Bitcoin Cash (BCH) emerged
In 2017, the Bitcoin community faced a key problem — the Bitcoin blockchain had become extremely congested, and transaction processing speed was affected. As a result, the time to confirm a transaction and the associated fees increased. This sparked extensive discussions within the community about how Bitcoin could be scaled for widespread use. Amid these debates, the solution proposed by a group of developers was to increase the size of the blocks in the blockchain. While Bitcoin has a block size of 1 MB, Bitcoin Cash initially raised this threshold to 8 MB, and later to 32 MB. This increase gave Bitcoin Cash the capacity to process more transactions simultaneously, reducing network congestion and ensuring lower transaction fees. Thus, on August 1, 2017, Bitcoin Cash was created through a process called a “hard fork,” which means the Bitcoin blockchain split, giving birth to a distinct cryptocurrency with its own rules.
What are the differences between Bitcoin (BTC) and Bitcoin Cash (BCH)
What are the differences between Bitcoin (BTC) and Bitcoin Cash (BCH)
Bitcoin (BTC) and Bitcoin Cash (BCH) are two extremely popular cryptocurrencies in the digital world, but they often cause confusion among beginners. Although they come from the same “tree,” the two coins have distinct characteristics and different purposes.
Introduction to Bitcoin (BTC) and Bitcoin Cash (BCH)
Bitcoin, often called the “king of cryptocurrencies,” was created in 2009 by a person or group under the pseudonym Satoshi Nakamoto. It is designed as a decentralized payment system that enables peer-to-peer transactions without intermediaries. Bitcoin Cash was later born in 2017 through a process called a “hard fork.” This split occurred in response to debates about Bitcoin’s scalability and the desire to create a coin better suited for fast and inexpensive payments. Although they initially shared the same technological base, Bitcoin and Bitcoin Cash evolved differently and became two distinct solutions for users.Key differences between Bitcoin (BTC) and Bitcoin Cash (BCH)
There are several significant differences between Bitcoin and Bitcoin Cash that affect how they work and the purpose for which they are used. Block size- Bitcoin: A block is limited to 1 MB. This was initially implemented as a security measure to reduce the risk of attacks and to keep the network decentralized.
- Bitcoin Cash: Blocks are larger, starting at 8 MB and gradually increasing to 32 MB, which allows more transactions to be processed simultaneously.
- Bitcoin: The focus is on becoming a store of value, a kind of “digital gold” that can preserve investment value over the long term.
- Bitcoin Cash: It is geared towards becoming a daily-use digital currency for fast, affordable payments.
- Bitcoin: Has significantly higher transaction fees, usually a few dollars per transaction, depending on network congestion.
- Bitcoin Cash: Fees are much lower, just a few cents, thanks to larger block capacity and a different architecture.
- Bitcoin: Is more popular and widely known. It is supported by more exchanges, wallets, and financial institutions.
- Bitcoin Cash: Although less popular than Bitcoin, it is still accepted by many platforms as a payment method due to its benefits.
- Bitcoin: Has a higher hash rate (the network’s processing power), which means it is more secure against potential attacks.
- Bitcoin Cash: The hash rate is lower, making it theoretically more vulnerable, but the risk remains low thanks to decentralization principles.
- Bitcoin: The Bitcoin community is more conservative and focuses on maintaining maximum decentralization and security.
- Bitcoin Cash: Is supported by a community more interested in mass adoption, speed, and low costs.
Main advantages of Bitcoin Cash (BCH)
Main advantages of Bitcoin Cash (BCH)
Fast transactions and lower costs
One notable advantage of Bitcoin Cash is transaction speed. Compared to Bitcoin, which often faces high confirmation times due to its small block size, BCH has larger blocks (8 MB initially, later 32 MB). This allows a much larger volume of transactions to be processed in a short time.Direct benefits for users:- Shorter transaction time – BCH can confirm transactions in seconds or minutes, compared to the hours sometimes required by the Bitcoin network.
- Lower costs – BCH transaction fees are significantly lower than Bitcoin’s, making it ideal for everyday purchases or small international transfers.
Better scalability
BCH’s scaling capability makes it suitable for widespread use and growing global adoption. Most cryptocurrencies are limited by their network capacity, but Bitcoin Cash was designed to address this hurdle.Why scalability matters?- Supports mass adoption, both for small payments and business-level transfers.
- Allows the network to grow without negatively affecting transaction cost or time.
Ideal for international transfers
Bitcoin Cash offers a simple, efficient solution for international money transfers. Bank transfers can be expensive and slow, while BCH is an excellent alternative due to low fees and speed.How this helps you- Send money across borders without paying high fees to banks or traditional operators.
- Transfers arrive quickly at the destination, regardless of location.
Strong community
Bitcoin Cash benefits from an engaged community of developers and supporters who contribute to continuous network improvement. This active community ensures stability and innovation on the platform.What this means for you- You can trust that the technology behind BCH is being continuously developed to remain competitive.
- There are multiple resources, forums, and guides to help you understand and easily use BCH.
Easier to use for micropayments
Another major advantage of Bitcoin Cash is its ability to handle micropayments (very small payments). Due to high fees, Bitcoin is not practical for smaller transactions. BCH, on the other hand, excels in this area.Use cases:- Paying for coffee, lunch, or other daily purchases without worrying that fees will exceed the amount spent.
- Online payments for services or digital content without significant added costs.
Censorship resistance
One of the essential values of cryptocurrencies is resistance to censorship, and Bitcoin Cash preserves this characteristic intact. This means you can make transactions without interference from a government or central organization.Why this matters- It gives you full control over your money.
- It is ideal for people in countries where governments excessively control the financial system.
Main disadvantages of Bitcoin Cash (BCH)
Main disadvantages of Bitcoin Cash (BCH)
Bitcoin Cash (BCH) emerged to improve Bitcoin’s functionality, with the goal of offering faster transactions and lower fees. However, this project has a number of important disadvantages that should be considered by anyone wishing to invest or trade.
Limited real scalability
One of the main reasons behind the creation of Bitcoin Cash was to solve Bitcoin’s scalability issues. Although BCH allows larger blocks (currently 32 MB), the problem is not completely solved.Key scalability issues for Bitcoin Cash (BCH):- Rising costs for full nodes: Increasing block size implies higher storage and bandwidth requirements, which limits how many users can run full nodes, leading to a trend toward network centralization.
- Future impact as adoption grows: As adoption expands, a substantial increase in transaction volume could put Bitcoin Cash in front of challenges similar to those faced by Bitcoin, even with the current larger block size.
Mining centralization
Another major disadvantage of Bitcoin Cash is mining centralization. A large portion of the mining power is concentrated in the hands of a few large entities, which runs counter to the decentralization principles promoted by cryptocurrencies.How this affects end users:- Higher risk of attacks: If a group of miners controls more than 51% of the computing power, there is a risk they could manipulate the network.
- Centralized decisions: The system’s democratic balance can be influenced by large miner groups by forcing certain network upgrades.
Limited merchant acceptance
Despite the efforts of the team behind Bitcoin Cash, its adoption significantly lags behind Bitcoin. Very few online and physical merchants accept BCH as a payment method.- Bitcoin remains the gold standard: Most companies prefer to integrate BTC, considering it more stable and globally recognized.
- Lack of trust: Users prefer cryptocurrencies with a large adoption base to reduce the risk of extreme price fluctuations.
High price volatility
Volatility is a common issue in the world of cryptocurrencies, and Bitcoin Cash is no exception. However, due to lower adoption and liquidity compared to Bitcoin, price fluctuations are more pronounced.Disadvantages for investors and everyday users:- Unexpected losses: The value of BCH can drop significantly in a short time.
- Difficult financial planning: For merchants, volatility makes it difficult to accept BCH in business operations.
Lack of a clear development direction
Bitcoin Cash has gone through a series of internal conflicts that have led to network splits (forks), such as Bitcoin SV. This has raised questions about long-term stability and a clear direction for the project.Consequences:- Confusion for new users: Multiple forks can make it difficult to understand what Bitcoin Cash actually represents.
- Ecosystem fragmentation: Community resources and attention are split, which affects the overall development strategy.
Relatively lower security
Bitcoin remains the market leader in terms of security, thanks to its high hash rate (the network’s computing power). By comparison, Bitcoin Cash is less secure because it has a significantly lower hash rate.Consequences:- Networks with lower computing power are more vulnerable to 51% attacks.
- Users who prioritize network security may avoid transacting in BCH.
Divided community
The development and improvements of Bitcoin Cash are often affected by internal disagreements within the community. These conflicts slow progress and create uncertainty among investors and users.- Controversial upgrades: Any major change sparks heated debates, which hinders fast and efficient implementations.
- Lack of cohesion: A fragmented community makes it difficult to build a solid future for the network.
Before investing in BCH
It is important to consider all aspects before investing in any cryptocurrency, including Bitcoin Cash. Every cryptocurrency comes with its own risks, and the decision to invest should be based on research and your ability to assume these risks.What to choose: Bitcoin or Bitcoin Cash? The choice between Bitcoin and Bitcoin Cash depends on your financial needs and goals. When to choose Bitcoin- If you see it as a long-term investment or a store of value similar to gold.
- If you are less concerned about transaction speed and cost.
When to choose Bitcoin Cash
- If you need a digital currency for everyday payments that are fast and have lower fees.
- If you want to support a network focused on large-scale adoption.
The Bitcoin Cash blockchain
The Bitcoin Cash blockchain
Consensus mechanism
Bitcoin Cash uses the same consensus mechanism as Bitcoin, known as Proof of Work (PoW). Miners compete to solve complex mathematical problems, and the first to solve them validates a new block of transactions. As a reward, the miner receives a newly issued amount of BCH plus the fees generated by the transactions in that block.SHA-256 mining algorithmBCH uses the SHA-256 hashing algorithm, identical to Bitcoin’s. This means specialized ASIC (Application-Specific Integrated Circuit) equipment used for mining Bitcoin can also be used for Bitcoin Cash.Difficulty Adjustment (DAA)To maintain an average block time of about 10 minutes, BCH employs a difficulty adjustment algorithm (Difficulty Adjustment Algorithm – DAA). Initially, BCH used Emergency Difficulty Adjustment (EDA), but for greater stability, it was replaced with the ASERT DAA algorithm. The new system adjusts difficulty after each block, taking into account the average time of previous blocks.Security of the Bitcoin Cash blockchain
Security is essential for any public blockchain, and BCH bases its security on several factors working together to defend the network.Hashing powerBCH’s security is proportional to the network’s total hashing power. Higher hashing power makes a 51% attack extremely difficult and costly. Although Bitcoin Cash’s hashing power is lower than Bitcoin’s, it remains significant enough to protect the network against attacks.Miner distributionNetwork security increases as miners are more geographically and organizationally distributed. The more entities participate in mining, the lower the risk of collusion or single points of failure. The BCH community constantly encourages a wide diversity of miners.Node softwareThe BCH network benefits from multiple node software implementations, such as Bitcoin ABC, BCHD, Bitcoin Unlimited, and Bitcoin Verde. If a critical vulnerability or bug appears in a single implementation (for example, Bitcoin ABC), the other implementations (BCHD, Bitcoin Unlimited, Bitcoin Verde) would remain unaffected. This prevents a collapse or major vulnerability across the entire network.Scripts and smart contracts
After the fork, BCH expanded its scripting language, adding flexibility for more complex functionalities such as smart contracts. However, this flexibility requires a high level of care to prevent vulnerabilities to attacks.
How much does Bitcoin Cash cost. BCH price history
How much does Bitcoin Cash cost. BCH price history
BCH price – Spectacular rise (August 2017 – December 2017)From its launch until December 2017, Bitcoin Cash experienced one of the most spectacular rises in cryptocurrency history. It started at a price of 240 USD and reached an impressive high of 4310 USD, marking an increase of about 18 times in just a few months.This bull run reflected massive investor interest in the newly launched cryptocurrency, as well as the general market sentiment at the time, when all major cryptocurrencies were hitting all-time highs.Why this increase was so significant:
- Enthusiasm about the Bitcoin hard fork attracted investors who saw Bitcoin Cash as a faster, more accessible alternative.
- The overall growth of the crypto market in 2017 drew large amounts of capital into digital assets.
- Crypto market correction, followed by a general decline in investor interest.
- Decreased adoption rate of BCH, correlated with growing skepticism toward cryptocurrencies in general.
How to buy BCH through the Abarai platform
How to buy BCH through the Abarai platform
The Abarai platform makes buying cryptocurrencies simple and accessible, even for beginners. Discover below everything you need to know about the Abarai platform, its advantages, and most importantly, how to buy BCH step by step.
What is the Abarai platform
Abarai is a platform dedicated to buying and selling cryptocurrencies, an official Paybis partner, and operates globally with coverage in over 180 countries.Main features of the Abarai platform:- Secure and fast transactions: Through Abarai you can carry out secure cryptocurrency transactions. Buy Bitcoin, Bitcoin Cash, Solana, Shiba Inu, BNB, Ethereum and many others without creating an account, through a quick and simple process similar to any online purchase. Compared to other platforms where the process can take hours or even days, Abarai completes transactions in a few minutes.
- Anonymity: For swap transactions you benefit from complete anonymity and instant transactions. For transactions under 5000 RON you only need to provide billing details.
- Romanian-language support, available by phone for quick assistance.
- Full transparency of fees from the outset. The platform does not practice hidden charges that reduce your profit.
- Full control over your funds: Funds are not stored on the platform. You decide where your cryptocurrencies are sent. Because Abarai does not hold users’ funds, it cannot block your money and even if the platform were hacked, you would have nothing to lose
- Multiple payment options: You can pay using credit/debit cards, Apple Pay, Google Pay, or Revolut for maximum flexibility.
How to buy BCH step by step
The following instructions will guide you step by step to purchase BCH through Abarai:- Access the Abarai platform
- Enter the transaction details
- Select the amount you want to spend and the desired cryptocurrency (in this case, BCH).
- Fill in the BCH wallet address where you want the coins to be sent.
- Choose the payment method
- Credit/debit card
- Google Pay / Apple Pay
- Revolut Pay
- Confirm the transaction
- Receive BCH in your wallet