What Is Bitcoin Cash (BCH)? A Beginner’s Guide
Coins · 6 min read · Updated July 7, 2026
Bitcoin Cash, ticker BCH, is a cryptocurrency that split away from Bitcoin on 1 August 2017. It was created by a group who disagreed with how Bitcoin should grow, and it carries forward a specific vision: that a cryptocurrency should work as fast, cheap, everyday electronic cash for spending, not mainly as a store of value. Because it shares Bitcoin’s early history up to the moment of the split, Bitcoin Cash can look confusingly similar to Bitcoin at first glance. This guide explains why the fork happened, what makes BCH different, and what to keep in mind about it.
Why Bitcoin Cash was created
For years, Bitcoin’s community debated how to handle growth. As the network became more popular, blocks filled up, and at busy times fees rose and transactions could wait a long time to confirm. The question was how to fix this — and two camps formed with very different answers.
One camp wanted to keep Bitcoin’s blocks small and add capacity in separate layers built on top, prioritizing decentralization. The other wanted to simply make each block bigger so more transactions fit directly on the main chain, keeping fees low for on-chain payments. When the sides could not agree, the second camp broke away and launched Bitcoin Cash as a separate network.
Larger blocks, a payments focus
The headline technical change is block size. Bitcoin Cash raised the limit far above Bitcoin’s roughly one-megabyte design, first to 8 megabytes and later to 32, so many more transactions can be packed into each block. The goal is to keep on-chain fees very low and confirmations reliable even when the network is busy.
This reflects the project’s core identity: BCH is meant to be spent. Supporters emphasize using it for real purchases and transfers rather than holding it untouched, aiming for the “peer-to-peer electronic cash” described in Bitcoin’s original 2008 whitepaper.
- Block size: much larger than Bitcoin’s, to fit more transactions on-chain.
- Priority: low fees and quick confirmations for everyday payments.
- Shared roots: BCH and BTC have identical transaction history before the August 2017 split.
What it shares with Bitcoin
Despite the split, Bitcoin Cash keeps a lot of Bitcoin’s foundations. It uses the same SHA-256 proof-of-work mining, has the same 21 million maximum supply, and follows the same roughly four-year halving schedule that gradually reduces new coin issuance.
Anyone who held Bitcoin at the moment of the fork received an equal amount of Bitcoin Cash, because the two chains share history up to that point. After the split, though, they have developed independently, with their own upgrades, communities, and prices.
Later splits and features
Forks can fork again. In November 2018 Bitcoin Cash itself split, producing another coin called Bitcoin SV after a fresh disagreement within its community. This history of divisions is part of what newcomers find confusing about the “Bitcoin” family of coins.
On the development side, Bitcoin Cash has added capabilities beyond simple payments over the years, including tools for issuing tokens and building more advanced transactions, along with regularly scheduled network upgrades. Still, its ecosystem remains far smaller than Bitcoin’s.
Things to consider
The most practical thing to understand is that Bitcoin Cash and Bitcoin are different networks with different coins, despite the shared name and history — it is easy to confuse them, so double-check which one you are dealing with. Bigger blocks also involve a trade-off: they raise the cost of storing and running the full ledger, which critics argue can, over time, reduce how many people run their own nodes.
Bitcoin Cash has a much smaller network effect than Bitcoin, and its price can be volatile. As always, this is educational information rather than financial advice, and it is worth researching thoroughly before making decisions.
Frequently Asked Questions
Is Bitcoin Cash the same as Bitcoin?
No. Bitcoin Cash split from Bitcoin in August 2017 and is a separate network with its own coin (BCH), even though the two share the same history before the fork. They now have different rules, communities, and prices, so it is important not to confuse them.
Why does Bitcoin Cash use larger blocks?
Larger blocks let more transactions fit directly on the main chain, which keeps on-chain fees low and confirmations reliable even when the network is busy. This supports Bitcoin Cash’s focus on being used as everyday electronic cash for payments.
Does Bitcoin Cash have a supply limit?
Yes. Like Bitcoin, Bitcoin Cash has a maximum supply of 21 million coins and follows the same roughly four-year halving schedule, so new coins are issued at a gradually decreasing rate through mining.