Bitcoin Cash: everything you need to know about BCH

What is Bitcoin Cash?

Bitcoin Cash (BCH) is a cryptocurrency that emerged from a hard fork of Bitcoin in 2017. The goal of Bitcoin Cash was to address the limitations of the original Bitcoin blockchain, such as transaction speed and costs. Bitcoin Cash has a larger block size than Bitcoin, allowing more transactions to be processed in one block. This results in higher transaction speeds and lower costs. 

Moreover, Bitcoin Cash places a greater emphasis on its use as a means of payment, as opposed to Bitcoin, which is more often seen as an investment. Bitcoin Cash is a popular cryptocurrency recognized by many exchanges and retailers worldwide. 

How does Bitcoin Cash work?

Bitcoin Cash operates largely the same way as cryptocurrencies like Bitcoin. It uses a decentralized structure where no central authority has control over transactions and balances. The platform functions as follows: 

• Transactions: When someone wants to send money using Bitcoin Cash, they create a transaction specifying the recipient's public key, the amount of BCH to be sent, and the sender's private key for signing. 
• Miners: Transactions are collected by miners who verify them and add them to a new block in the blockchain. Miners earn rewards for verifying transactions and contributing to the network. 
• Blockchain: Once added to a block, transactions are immutably recorded in the blockchain, which is a decentralized ledger of all transactions since the network's inception. 
• Confirmations: Transactions require confirmation by multiple miners before being considered complete. The more confirmations a transaction has, the greater the certainty that it has been successfully executed. 
• Balances: Balances are maintained in the blockchain and can be viewed by anyone at any time. Anyone with a BCH wallet has access to their balance and can use it to make payments. 

In summary, Bitcoin Cash provides a fast, low-cost, and decentralized way to make payments, with transactions being processed quickly and secured through cryptography. 

The BCH token

The BCH token serves as the digital currency on the Bitcoin Cash network, used both as an investment asset and for making payments. New tokens are generated by miners. The total supply of BCH is limited to 21 million tokens, and transaction fees are lower than many other cryptocurrencies, thanks to the larger block size. The value of BCH is largely determined by supply and demand on cryptocurrency markets. Additionally, the coin is supported by an increasing number of trading platforms and businesses that accept BCH as a means of payment. 

The Technology Behind BCH

The technology behind BCH utilizes a peer-to-peer network of nodes that verify transactions and add blocks to the blockchain. BCH originated after a hard fork from the original Bitcoin blockchain in 2017 and employs a Proof-of-Work consensus mechanism. Miners earn rewards for verifying transactions and adding blocks to the blockchain. 

A significant feature of BCH is its larger block size of 8 MB compared to the 1 MB block size of the original Bitcoin blockchain. This allows for processing more transactions per second, resulting in low transaction fees and fast transaction processing. 

BCH has a limited supply of 21 million tokens, which means that no new tokens will be issued beyond this quantity. 

The Bitcoin Cash ecosystem

The Bitcoin Cash ecosystem comprises various components that collaborate to support the blockchain and its cryptocurrency. Below are the key elements of the BCH ecosystem: 

• Miners: Miners verify transactions and earn rewards by mining new BCH tokens. 
• Wallet Providers: These entities allow users to securely store their BCH. They also provide functionalities like sending and receiving BCH and viewing balances. 
• Exchanges: Exchanges are trading platforms where users can buy, sell, and trade BCH. They are the primary places where the price of BCH is determined by supply and demand. 
• Businesses and Brands: More and more businesses accept BCH as a means of payment, increasing the adoption and popularity of the cryptocurrency and contributing to the growth of the BCH ecosystem. 
• The BCH Community: This community consists of users, developers, investors, and other stakeholders who collectively support and improve the cryptocurrency. 

All these components together form the BCH ecosystem, providing the support and infrastructure needed to make BCH a successful digital currency and investment asset. 

Benefits of Bitcoin Cash

What are the advantages of Bitcoin Cash? Why do investors choose BCH? 

• High transaction speeds 
• Low fees 
• Strong security 
• Global reach 
• Inflation-resistant due to a limited supply 

Drawbacks of Bitcoin Cash

Nobody is perfect, and Bitcoin Cash has its disadvantages. What are the downsides of BCH? 

• Volatility 
• Limited adoption 
• Relatively limited network size 

Who is the founder of Bitcoin Cash?

The founder of Bitcoin Cash is not one specific person or entity. The network emerged from a hard fork of the Bitcoin blockchain in 2017. This hard fork resulted from a conflict among different parties within the Bitcoin community regarding the network's future direction and scalability. Instead of one central founder, the Bitcoin Cash ecosystem consists of a large number of developers, miners, businesses, and users who collectively contribute to the management and further development of the network. 

Price forecasts

In 2026 experts expect a minimal price of €1,515.52 and a minimal price of €5,017.74 in 2031.