# What is Bitcoin Cash and how does it differ from Bitcoin?

Jessica Washington · August 4, 2026

> Bitcoin Cash was created in 2017 through a "hard fork" of the original Bitcoin blockchain, allowing for larger block sizes to increase transaction...

Bitcoin Cash was created in 2017 through a "hard fork" of the original Bitcoin blockchain, allowing for larger block sizes to increase transaction speed and reduce fees.

While Bitcoin has a block size limit of 1MB, Bitcoin Cash initially increased this to 8MB, allowing it to process more transactions per second than the original Bitcoin network.

**Also worth reading:** [What is the best Bitcoin ETF for retirement accounts in 2026?](https://cryptgo.co/knowledge/what_is_the_best_bitcoin_etf_for_retirement_accounts_in_2026.php) · [Bitcoin ETF vs Spot Bitcoin 2026: Which is the Better Investment Strategy for Institutional and Retail Investors?](https://cryptgo.co/knowledge/bitcoin_etf_vs_spot_bitcoin_2026_which_is_the_better_investment_strategy_for_institutional_and_retail_investors.php) · [Bitcoin vs Gold inflation hedge comparison: Which asset protects wealth better in 2026?](https://cryptgo.co/knowledge/bitcoin_vs_gold_inflation_hedge_comparison_which_asset_protects_wealth_better_in_2026.php)

Bitcoin Cash emphasizes its focus on being a "peer-to-peer electronic cash system," prioritizing ease of use for everyday transactions compared to Bitcoin's store-of-value proposition.

The Bitcoin Cash blockchain underwent another split in 2018, resulting in the creation of Bitcoin SV (Satoshi's Vision), which further increased the block size to 128MB.

Unlike Bitcoin, which has a fixed supply of 21 million coins, Bitcoin Cash has no fixed supply cap, allowing for more flexibility in monetary policy.

Bitcoin Cash utilizes a different mining algorithm, called AvalonMine, which is designed to be more resistant to specialized ASIC mining hardware compared to Bitcoin's SHA-256 algorithm.

The Bitcoin Cash network employs a different difficulty adjustment algorithm than Bitcoin, allowing it to adapt more quickly to changes in mining power, ensuring more stable block times.

While Bitcoin is primarily used for investment and speculation, Bitcoin Cash has seen increased adoption in regions with high inflation and limited access to traditional banking services.

Prominent supporters of Bitcoin Cash include Roger Ver, a early Bitcoin investor known as "Bitcoin Jesus," and Craig Wright, who claims to be the pseudonymous creator of Bitcoin, Satoshi Nakamoto.

Unlike Bitcoin, which has a highly decentralized development process, Bitcoin Cash development is more centralized, led by the Bitcoin ABC implementation team.

Bitcoin Cash has faced criticism for its larger block sizes, which some argue can lead to increased centralization as only large miners and nodes can effectively participate in the network.

The price of Bitcoin Cash has been highly volatile, reaching an all-time high of around $4,000 in 2017 before dropping significantly and trading around $400 as of August 2024.

Bitcoin Cash has struggled to gain mainstream adoption and market share compared to Bitcoin, which remains the dominant cryptocurrency in terms of market capitalization and user base.

While Bitcoin uses the Proof-of-Work (PoW) consensus mechanism, Bitcoin Cash has experimented with alternative consensus models, such as Proof-of-Authority (PoA), to address scalability concerns.

The Bitcoin Cash network has experienced several contentious hard forks and community disagreements, which have at times led to decreased trust and confidence in the project.

Compared to Bitcoin, Bitcoin Cash has a more active development community, with regular software updates and proposals to improve the network's functionality.

Bitcoin Cash has faced regulatory challenges in certain jurisdictions, with some countries and financial institutions treating it as a separate cryptocurrency from Bitcoin.

The energy consumption of the Bitcoin Cash network is generally lower than that of the Bitcoin network due to its different mining algorithm and block size parameters.

Bitcoin Cash has attracted a dedicated user base, particularly in regions where traditional financial services are less accessible, but it has struggled to achieve the same level of global recognition as Bitcoin.

While both Bitcoin and Bitcoin Cash share the same underlying blockchain technology, their differing design choices and community dynamics have led to ongoing debates about the best approach to scaling cryptocurrencies.

Canonical: https://cryptgo.co/knowledge/what_is_bitcoin_cash_and_how_does_it_differ_from_bitcoin.php
Markdown: https://cryptgo.co/knowledge/what_is_bitcoin_cash_and_how_does_it_differ_from_bitcoin.php/index.md