1. Basic Information
- Official Name / Symbol: Bitcoin Cash (BCH)
- Launch Date & Founder: Forked from Bitcoin blockchain in August 2017. Key figure: Roger Ver; launched by the Bitcoin Cash ABC group (changelly.com, decrypt.co)
- Purpose: Designed for low fees and fast processing—aims to function as a 'P2P electronic cash system'
2. Technical Features
- PoW Consensus: Uses SHA-256, compatible with Bitcoin mining hardware (arxiv.org)
- Large Block Size: Expanded from 8MB to 32MB in 2018, theoretically enabling high TPS (decrypt.co)
- EDA and DAA Mechanisms: Enables automatic block difficulty adjustment to improve efficiency
- Zero-conf & Schnorr Signatures: Supports instant transactions; gradually adopts advanced cryptographic techniques like Schnorr (cointelegraph.com)
3. Use Cases & Functions
- Micropayments & Transfers: Suitable for fast peer-to-peer transactions thanks to high TPS and low fees
- Business Integration: Supported by platforms like BitPay; used for content tips and P2P payments
- SmartBCH Sidechain: Supports DeFi/NFT applications via smart contract-enabled sidechain
4. Tokenomics
- Max Supply / Circulation: Capped at 21 million BCH; approx. 19.88 million already in circulation
- Mining Rewards & Halving: Started at 12.5 BCH → currently 6.25 BCH; last halving in April 2024
- Governance: Lacks formal governance structure—developer and node discussions lead changes
5. Market Information
- Price & Market Cap: Rebounded from $391 to $418 on May 31, 2025; currently $427.55 with $8.5B market cap (coindesk.com, coinbase.com)
- Volatility & Relative Performance: BCH/BTC ratio saw an 11% gain, indicating outperformance against Bitcoin (coindesk.com)
- Forecast: Projected range between $339–$498 in 2025; still far below all-time high of $4,355
6. Community & Ecosystem
- Active Node Clients: Includes Bitcoin ABC, BCHN, and Bitcoin Unlimited (fr.wikipedia.org)
- Protocol Upgrades: 2023 upgrades included CashTokens, P2SH-32, and OP_RETURN (es.wikipedia.org)
- Developer Support: Community initiatives for SmartBCH, hackathons, and DApp development
7. Strengths & Weaknesses
7.1 Strengths
- Low Fees & High Speed: Transaction fees ~0.0001 BCH; 32MB block enables high throughput (decrypt.co, ecos.am)
- Shared Security with Bitcoin: PoW and ASIC mining ensure a degree of security
- Real-World Usability: Features like SmartBCH and zero-conf enhance payment readiness
7.2 Weaknesses
- Hash Power Centralization: Shared mining pool risks 51% attacks; detected selfish mining behaviors
- Limited Adoption: Lags behind BTC/ETH in DApp, exchange, and user base support
- Brand Trust Issues: Forks like BSV and frequent hard forks hurt investor confidence
- Low Transaction Volume: Still only 1/10th of BTC's transaction volume
8. Investment Perspective & Warnings
8.1 Investment Appeal
- Persistent P2P Vision: Maintains focus as a digital cash alternative
- Ongoing Tech Development: SmartBCH and token upgrades suggest continuous growth
- Arbitrage Opportunities: BCH/BTC ratio recovery and technical bounces offer trading entries
8.2 Investment Risks
- 51% Attack Risks: Mining centralization creates a security overhang
- Limited Real-World Demand: Adoption remains weak; price often tied to BTC/ETH trends
- Fork & Governance Conflict: Potential for further fragmentation and policy disputes
8.3 Strategic Recommendations
- Short-Term Trading Strategy: Consider entry at $391–$418 support/resistance band
- Portfolio Diversification: Allocate small BCH portion for payment-oriented holdings
- Monitor On-Chain & Mining Metrics: Track hash rate and miner concentration periodically
- Follow Ecosystem Developments: Focus on SmartBCH/CashTokens adoption and developer activity
✅ Conclusion
Bitcoin Cash is focused on fast, low-cost transactions for real-world use. While features like SmartBCH and zero-conf show progress, concerns remain over security risks, ecosystem limitations, and brand instability.
For expert investors, we recommend carefully analyzing security metrics, ecosystem growth, and fork risks before increasing BCH exposure.
