Introduction
Bitcoin Cash (BCH), born from a 2017 hard fork of Bitcoin (BTC), aimed to address scalability issues by prioritizing larger block sizes and lower fees. However, persistent governance disputes and underperformance against BTC raise questions about its future. This article explores BCH's journey, technical differences, market performance, and prospects for 2021.
Key Differences Between Bitcoin and Bitcoin Cash
1. Block Size and Scalability
- Bitcoin Cash: 32MB blocks (since 2018) support ~91,425 transactions per block.
- Bitcoin: 1MB blocks (non-SegWit) handle ~5,000 transactions per block.
👉 Learn how block sizes impact transaction speeds
2. Transaction Volume
- BCH: Averages 1.36 transactions/second (tps), peaking at 24 tps during stress tests.
- BTC: Consistently processes ~3.98 tps, with higher fees (~USD10.05/transaction).
3. Mining Dynamics
- Both use SHA-256 hashing, but BTC’s hashrate grew 43% in 2020, while BCH’s fell 58%.
- Decentralization concerns: Three pools dominate >50% of BCH mining.
Market Performance: BCH vs BTC
| Metric | Bitcoin Cash (BCH) | Bitcoin (BTC) |
|---|---|---|
| 2020 Price Growth | +36.5% | +284% |
| Market Cap (2021) | ~USD8.04B | ~USD600B+ |
| BTC/BCH Ratio | 0.0013 BTC (ATL) | N/A |
Source: CoinGecko, Bravenewcoin
Governance Challenges
- 2020 Fork: Split into BCH Node (majority) and BCH ABC (minority) over a contentious 12.5% miner tax proposal.
- Community Backlash: Prominent backer Roger Ver criticized the tax as "Soviet-style central planning."
FAQ: Common Questions Answered
Q1: Is Bitcoin Cash faster than Bitcoin?
A: Yes—BCH’s larger blocks enable faster, cheaper transactions (~$0.002 fee vs BTC’s ~$10.05).
Q2: Why does BCH have fewer transactions despite its capacity?
A: Adoption lags; most users still prefer BTC for store-of-value and LN for micropayments.
Q3: Can BCH coexist with BTC long-term?
A: Possibly, if BCH carves a niche as a payment network while BTC dominates as "digital gold."
Future Outlook
Bitcoin Cash faces an uphill battle to differentiate itself, especially after repeated forks and BTC’s institutional adoption. Success hinges on:
- Stabilizing governance to avoid further splits.
- Boosting real-world usage (e.g., Kim Dotcom’s K.im platform).
- Competing with Layer-2 solutions like Lightning Network.
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Conclusion
While Bitcoin Cash offers technical advantages for payments, its market performance and community fragmentation highlight challenges. For BCH to regain momentum in 2021, it must prove its utility beyond being a "Bitcoin alternative." The crypto ecosystem remains dynamic, and BCH’s fate will depend on execution and adoption.