Bitcoin Cash (BCH) is a cryptocurrency forked from the Bitcoin blockchain. Contrary to its name, it is an altcoin entirely distinct from BTC. It was created with the goal of overcoming the processing limitations of the Bitcoin blockchain and realizing Satoshi Nakamoto's original vision for digital currency.
According to CoinMarketCap, a global market monitoring site, BCH was trading at $517.09 at 4:57 PM on the 11th, up 1.46% from the previous day. It has risen 20.18% over the past year. This increase is smaller than the 28.9% rise for BTC over the same period. It is also down 6.98% from its initial issuance price.
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Launched in 2017 as a Bitcoin hard fork
Bitcoin Cash was born in August 2017, when the Bitcoin community split over increasing the block size. The Bitcoin blockchain can only store 1 megabyte (MB) of data per block, leading to delays and high transaction fees when transactions are concentrated. This led to the emergence of a group that argued that "BTC should be an electronic currency used in everyday life," and a new chain, Bitcoin Cash, emerged, increasing the block size by up to eight times.
In other words, Bitcoin Cash is a new chain created by changing the rules of the existing Bitcoin blockchain. This process is called a "hard fork." When a hard fork occurs on a blockchain, some participants follow the existing rules, while others choose the new ones, resulting in two separate networks. Bitcoin Cash split from the Bitcoin blockchain at block number 478,558. The cryptocurrency of the same name, Bitcoin Cash (BCH), is used as the base currency of this chain.
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Despite lower fees, transactions and awareness remain stagnant.
The price of BCH soared when Jihan Wu, founder of Bitmain, which dominated the global mining market at the time, spearheaded the Bitcoin Cash project. In December of that year, BCH soared to $3,260.55 per coin, but subsequently plummeted, currently remaining below its initial issuance price.
Despite its ambitious launch, transaction activity remains minimal. According to blockchain.com, only 19,635 transactions occurred on the Bitcoin Cash blockchain in the past 24 hours. This is significantly lower than the 487,712 transactions processed on the Bitcoin blockchain during the same period. This suggests that despite its structural advantages, its user base is limited and market awareness is low. While BTC has established itself as digital gold, BCH still faces the challenge of proving its identity.
- Reporter Do Ye-ri
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