What Is Bitcoin Cash? How It Differs From Bitcoin
Bitcoin Cash (BCH) is a separate cryptocurrency created in a 2017 split from Bitcoin. See why it split, what holders received and how the two coins differ.
By Christopher Cannucciari · Published
Key takeaways
- Bitcoin Cash (ticker BCH) is a separate cryptocurrency with its own chain. It was created in August 2017 through a hard fork of Bitcoin and is not a version of bitcoin.
- The split grew out of a long scaling dispute, mainly over the block size limit. Bitcoin Cash raised the limit, and Bitcoin kept its smaller one.
- Both coins use proof of work with the same hashing algorithm, and both are capped at 21 million coins. They differ in block size, hash power, node count, development and how widely they are supported.
- People who controlled bitcoin keys at the split ended up with coins on both chains. People who held through an exchange depended on that exchange’s choices.
- Confusion over the names and tickers is a common opening for scams, so check which coin and which network you are dealing with.
What is Bitcoin Cash?
Bitcoin Cash is a separate cryptocurrency, usually abbreviated BCH, that began in August 2017 when a group of users and miners split from Bitcoin through a hard fork. It has its own blockchain, its own coin, its own developers and its own community.
The shared history is why the names invite confusion. Every block up to the moment of the split is identical on both chains. After it, each chain adds its own blocks, and a transaction on one chain does not move coins on the other.
Bitcoin Forks Explained: Soft Forks, Hard Forks and Chain Splits covers the mechanics of a hard fork. This article focuses on the coin that resulted. If you want the original first, What Is Bitcoin? is the place to start.
Why did Bitcoin Cash split from Bitcoin?
Bitcoin Cash split from Bitcoin because of a long disagreement about how the network should handle growing demand, centered on the block size limit. Every block can hold only so much data, so only so many transactions fit in each one, and as usage grew people argued about what to do.
One side wanted a higher limit, so that more payments could fit directly on the main chain and everyday transactions would stay cheap. The other side wanted to keep blocks small, so that running a node stays affordable for many people, and to move small payments onto separate layers such as the one described in What Is the Lightning Network?. Both positions have thoughtful supporters, and this site takes no side.
In August 2017 the group that favored bigger blocks created Bitcoin Cash with a larger limit, and it has increased that limit since. The original chain carried on as Bitcoin. In the same month Bitcoin activated SegWit, an upgrade that Bitcoin Cash did not adopt. The History of Bitcoin: From a Whitepaper to a Global Network places the dispute in a longer timeline.
The “cash” in the name echoes the title of the original paper, “Bitcoin: A Peer-to-Peer Electronic Cash System”. The Bitcoin Whitepaper Explained, Section by Section walks through what the paper says. Supporters of each coin read the paper in support of their own approach, and this article does not try to settle that.
What did bitcoin holders receive in the split?
People who controlled their own private keys at the moment of the split ended up with the same amount of Bitcoin Cash as bitcoin, because both chains inherit the same ownership records up to that point. Claiming the new coins required access to the keys through software that supported the new chain.
People who kept bitcoin on an exchange depended on the exchange. Whether it credited Bitcoin Cash, and when, was the exchange’s decision.
The two balances are independent afterward. Spending bitcoin does not spend Bitcoin Cash, and the reverse is also true. The new coin was a separate asset whose value had to be established by its own market, so it was never a bonus from Bitcoin or from anyone. The same logic applies to any chain split, as Bitcoin Forks Explained describes.
How do Bitcoin and Bitcoin Cash differ?
The two coins differ mainly in block size, scaling approach, hash power, development and market support, while sharing the same basic design. The table sets out the main points without ranking either one.
| Bitcoin (BTC) | Bitcoin Cash (BCH) | |
|---|---|---|
| Began | 2009 | August 2017, by a hard fork of Bitcoin |
| Block size limit | Kept a smaller limit | Raised at the split and increased since |
| Block timing | A new block about every 10 minutes | A new block about every 10 minutes (target) |
| Consensus | Proof of work (SHA-256) | Proof of work (SHA-256) |
| Supply cap | 21 million | 21 million |
| SegWit | Activated in August 2017 | Not adopted |
| Scaling approach | Small blocks, with other layers for small payments | Larger blocks on the main chain |
| Hash power and nodes | Considerably more | Considerably less |
| Development | Open-source, led by Bitcoin Core and many contributors, with slow and cautious changes | Its own developers and software, with its own upgrade schedule |
| Market support | Listed and accepted more widely | Available on many exchanges and some payment services; support varies |
Hash power matters because, in proof of work, the cost of rewriting recent history rises with the computing power securing the chain. Bitcoin Hash Rate and Mining Difficulty Explained shows how that works. Current figures for hash power, node counts and support change, so look at live mining statistics and block explorers rather than trusting any fixed number. What Is a Bitcoin Node? What Running One Means explains why the node count matters for rule enforcement.
Is Bitcoin Cash just another name for Bitcoin?
No. Bitcoin Cash is a separate currency, and nothing about its price, supply or rules follows from Bitcoin’s. Exchanges, wallets and news outlets use “Bitcoin” and BTC for the original chain and BCH for Bitcoin Cash.
Some supporters of Bitcoin Cash argue that it stays closer to the original idea of peer-to-peer electronic cash. Many Bitcoin supporters reject that framing. That disagreement is part of the history, but for practical purposes the markets treat them as two assets with two tickers.
Why do the names lead to mix-ups and scams?
The names are close, the tickers look alike at a glance, and the older address style looks the same on both chains. An address alone does not always tell you which network it belongs to. That is why wallets and exchanges ask you to pick a network, and a wrong choice can be hard or impossible to undo. What Is a Bitcoin Address? Types, Reuse and Safety explains the formats.
Scammers use the confusion in familiar ways. A website or seller may advertise “Bitcoin” at an attractive price but deliver a different coin. A message may claim you are owed free split coins and ask for your seed phrase, or for a fee to “unlock” them. A fake support agent may tell you to move coins to a “safe” address on the other network.
No legitimate service needs your seed phrase. Common Bitcoin Scams and How to Spot Them catalogues these patterns, and How to Send and Receive Bitcoin Safely shows the habits that prevent a wrong-network mistake.
Has Bitcoin Cash split again?
Yes. Bitcoin Cash itself divided in later splits, and one of them created yet another coin. This article names none of them.
The pattern shows how disagreements in networks with no central owner can end in a division instead of a compromise. It also shows why any coin’s community, rules and track record deserve a look before you rely on it. Bitcoin vs Altcoins: What Is the Difference? offers a checklist for doing that with any coin.
What should you check before buying or sending either coin?
Check the coin, the network and the reason for the transaction before you confirm anything. A short routine covers most of the risk:
- Read the full name and ticker on the screen. BTC is bitcoin and BCH is Bitcoin Cash.
- Confirm that the receiving address and the service use the network you expect.
- Send a small test amount first and wait for it to arrive.
- Stop if someone who contacted you first is pushing you to act quickly.
- Check that your wallet or exchange supports the coin you hold, since support differs.
Taxes also apply. In the US, trading one coin for another is generally treated as a sale of the first, which can create a gain or a loss. How Is Bitcoin Taxed in the US? A General Guide gives the general picture, and a qualified tax professional can apply it to your situation.
If you are new to all of this, the Start Here path covers the fundamentals in order.
Where to go next
- Bitcoin Forks Explained: Soft Forks, Hard Forks and Chain Splits: how rule changes and splits work.
- Bitcoin vs Altcoins: What Is the Difference?: the wider field of coins other than Bitcoin.
- The History of Bitcoin: From a Whitepaper to a Global Network: the scaling debate in context.
- The Bitcoin Whitepaper Explained, Section by Section: the paper behind both names.
Frequently asked questions
What is Bitcoin Cash?
Bitcoin Cash, abbreviated BCH, is a separate cryptocurrency that began in August 2017 when a group of users and miners split from Bitcoin through a hard fork. It has its own chain, its own coin, its own developers and its own community.
Is Bitcoin Cash the same as Bitcoin?
No. The two share their history up to the split in 2017, but each chain has gone its own way since then. Exchanges, wallets and news outlets use BTC for bitcoin and BCH for Bitcoin Cash, and each coin has its own price and market.
Why did Bitcoin Cash split from Bitcoin?
The split followed a long disagreement about scaling, mainly whether to raise the block size limit. The group behind Bitcoin Cash wanted larger blocks so more payments could fit on the main chain. Bitcoin kept its smaller limit and moved toward other ways of scaling.
Did bitcoin holders receive Bitcoin Cash?
People who controlled their own private keys at the moment of the split ended up with the same amount of Bitcoin Cash as bitcoin, because both chains share the same ownership records up to that point. People who kept bitcoin on an exchange depended on whether the exchange chose to support the new coin.
How can I avoid mixing up Bitcoin and Bitcoin Cash?
Check the full name and ticker on the screen before you confirm, make sure the address and service use the network you expect, and send a small test amount first. Be wary of any seller or message that blurs the two names.
