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A beginner will likely think that Bitcoin (BTC) and Bitcoin Cash (BCH) are the same because they share the exact origin, name, and relatively identical symbol. Still, these globally recognized digital currencies serve very different purposes in the crypto economy.
Bitcoin was the first cryptocurrency created. It laid the foundation for decentralized finance (DeFi) and has since become widely accepted as a store of value, often called digital gold.
On the other hand, Bitcoin Cash was launched to address the growing concerns about slow Bitcoin transactions and rising fees by increasing the block size limit to allow more transactions per block and drastically reducing fees for everyday payments.
This article breaks down the key differences between BTC and BCH, including how they function independently.
Understanding Bitcoin and Bitcoin Cash
Bitcoin was created in 2009 as the first cryptocurrency to set the standard for decentralised currency. The Idea was simple: to build a form of digital money that anyone, anywhere, could use without involving any traditional bank system, government, or institution.
This digital asset leverages a peer-to-peer network to facilitate transfers. All Bitcoin transactions are recorded on the Blockchain, a public ledger that keeps track of every transaction. Blockchain is distributed across many computers around the world to keep it secure and maintain its original purpose.
Bitcoin Cash was created in 2017 after a hard fork in the Bitcoin network, a disagreement within the Bitcoin community. The goal was to increase the block size from Bitcoin’s original size to allow more transactions per second and attract lower fees.
Bitcoin Cash, just like Bitcoin, runs on a decentralised blockchain and is limited in supply.
Differences Between BTC and BCH
Although Bitcoin and Bitcoin Cash share similar origins, their systems have evolved differently. Those differences are clear in how each network handles transactions, smart contracts, and performance.
Here are the major differences between Bitcoin Cash and Bitcoin.
1. Difficulty in Adjustment
Bitcoin and Bitcoin Cash rely on mining to process transactions, but they both do it differently when adjusting the difficulty of mining blocks. Bitcoin makes changes roughly every two weeks using a standardized difficulty adjustment algorithm. Bitcoin Cash adjusts every few minutes and can adapt quickly when there are too many or too few miners on the blockchain network. This makes the network respond faster to mining activity changes and helps keep things running very smoothly.
2. Block size and Speed
Bitcoin was created to make transactions faster and cheaper, but it maintains a 1MB block size, which limits the number of transactions that can be made on each block. During busy periods, this can lead to delays and higher transaction fees. Bitcoin Cash increases the block size to 32MB to allow more transactions per block, making the network more suitable for high-volume peer-to-peer payments.
3. Smart Contracts
Bitcoin has limited support for smart contracts, an automated program that runs on the blockchain through an upgrade called Taproot, which helps with privacy and advanced transaction types. However, Bitcoin Cash allows smart contracts easily through an inbuilt scripting system. This opens doors for a wide range of decentralised applications and financial tools on the Bitcoin Cash network.
4. Token Issuance
Bitcoin token creation is done through an Omni layer, a secondary protocol on the Bitcoin blockchain. This is functional but lacks native integration and is relatively limited in adoption. Bitcoin Cash integrates token creation directly into its blockchain, called Simple Ledger Protocol (SLP), making it easier to create and manage tokens without additional steps.
5. Transactions Per Second
Bitcoin can handle 3 to 7 transactions per second. Although a second layer, like the lighting network, helps to improve this, the base layer remains a major constraint for larger-scale use of Bitcoin. Bitcoin Cash’s block size can handle between 60 and 200 transactions per second, making it more suitable for everyday micro and retail transactions.
6. Transactions Per Second
Bitcoin can handle about 3 to 7 transactions per second. This makes it great for occasional transactions but not suitable for large-scale use. Bitcoin Cash performs more transactions per second because it has a larger block size, which makes it work for everyday transactions.
Frequently Asked Questions (FAQs) on the difference between BTC and BCH
Are BTC and BCH the same?
No, they are not. Bitcoin is designed for faster and day-to-day transactions, while Bitcoin maintains the status of financial security and is used for long-term value storage.
Which one is faster between Bitcoin or Bitcoin Cash?
Bitcoin Cash is significantly faster because of its 32Mb size. It can handle more transactions than Bitcoin, with an average of 3 transactions per second, which makes it flexible for users.
Can I use Bitcoin Cash anywhere Bitcoin is accepted?
Although some merchants accept both, Bitcoin is adopted globally among larger companies and payment intermediaries. Few accept Bitcoin Cash, and the number is still growing.
Can I invest in both Bitcoin Cash and Bitcoin?
Yes. Both are available on major exchanges and can be part of a diversified crypto portfolio. Bitcoin is seen as a long-term store of value, and Bitcoin Cash is seen as a transaction asset with more practical payment use cases.
Conclusion
Choosing between Bitcoin and Bitcoin Cash is not about comparing some of the features that were mentioned; it is always about deciding what you want to use these digital currencies for in your personal or business life.
If you need long-term value, you already know it is safe to hold Bitcoin, but if you are building a payment system or serving customers who need speed and simplicity, Bitcoin Cash might be the right fit.
The essence of crypto is freedom and choice, and understanding the difference between Bitcoin and Bitcoin Cash puts you in a better position to use that choice wisely.
Last updated on July 12, 2025
