Guide
What Is Bitcoin Cash (BCH)? Why It Split and the Block Size War Explained
The Bottom Line: A Bitcoin Split Born from the Scaling Debate
Bitcoin Cash (BCH) is a separate cryptocurrency that was created on August 1, 2017, when it split off from Bitcoin in a hard fork. The trigger was a community disagreement known as the "block size war" — a clash over how to increase Bitcoin's transaction-processing capacity (scaling). It is remembered as the first major split in the history of Bitcoin.
Key points of this article
- On August 1, 2017, BCH was created through a hard fork from Bitcoin.
- The point of contention was the capacity per block — the block size (Bitcoin has a roughly 1MB cap).
- BCH chose to increase the block size (initially 8MB, later expanded further) to raise throughput.
- Anyone holding Bitcoin at the moment of the fork received an equal amount of BCH.
What Was the Block Size War?
Bitcoin blocks have had a roughly 1MB cap that Satoshi Nakamoto introduced in 2010, which limited how many transactions could be processed. As usage grew, the question of "how to raise capacity" split the community broadly into two camps.
| Camp | Argument |
|---|---|
| Big blockers | Increase the block size to process more transactions directly |
| Small blockers | Keep blocks small and scale through other means such as SegWit and the Lightning Network |
When this conflict could not be resolved, the camp that favored larger blocks split off as a new chain — and that became BCH.
How It Differs from Bitcoin (BTC)
- Block size: BCH adopted larger blocks, aiming to process more transactions at lower cost.
- Direction: BTC moved toward scaling with small blocks plus off-chain solutions (such as Lightning).
- Neither is inherently "correct" — it comes down to a difference in design philosophy. This article lays out the facts neutrally and does not judge which is superior.
BCH is a separate asset from BTC
Despite the similar name, Bitcoin Cash is a different cryptocurrency from Bitcoin. Its price and supply move independently.
Frequently Asked Questions
Q. When was Bitcoin Cash created? A. It was born through the hard fork on August 1, 2017.
Q. Why did it split off? A. The split stemmed from a disagreement over how to increase transaction-processing capacity (the block size war).
Q. How is it different from Bitcoin? A. BCH chose to raise throughput directly by increasing the block size, giving it a different design philosophy from BTC, which keeps blocks small.
Sources
- Bitcoin Cash (Wikipedia): https://en.wikipedia.org/wiki/Bitcoin_Cash
- History of bitcoin (Wikipedia): https://en.wikipedia.org/wiki/History_of_bitcoin
A note before investing
This article is for informational purposes only and is not investment advice. Bitcoin carries risks including price volatility, hacking, and loss. Make investment decisions at your own responsibility and only with funds you can afford to lose. Because tax rules and regulations can change, always check the latest official primary sources.
Sources
FAQ
- When was Bitcoin Cash created?
- It was born through the hard fork on August 1, 2017.
- Why did it split off?
- The split stemmed from a disagreement over how to increase transaction-processing capacity (the block size war).
- How is it different from Bitcoin?
- BCH chose to raise throughput directly by increasing the block size, giving it a different design philosophy from BTC, which keeps blocks small.
- What is BCH?
- BCH (Bitcoin Cash) is a separate cryptocurrency that split off from Bitcoin (BTC) in a hard fork on August 1, 2017. The split came out of the "block size war" over how to scale Bitcoin's transaction capacity: BCH increased its block size (initially to 8MB) to process more transactions directly, while BTC kept blocks small and scaled through other means such as SegWit and the Lightning Network. Anyone holding BTC at the moment of the fork received an equal amount of BCH, but the two have been distinct assets with independent prices ever since.
This article is informational only and is not financial, investment, or trading advice. Prices are reference snapshots and may be outdated. Always do your own research.
