Is Bitcoin Cash a Good Investment? (2025)

Why is Bitcoin Cash a good investment?

Bitcoin Cash was created in 2017 as a hard fork of Bitcoin, designed for lower fees and faster transaction speeds. Let’s look at some of the advantages of BCH: 

Fast, low-cost transactions
Bitcoin Cash can handle transactions for less than one penny, making it a great choice for smaller transactions and payments. The network processes transactions faster than Bitcoin thanks to its larger 32MB block size. This efficiency makes BCH attractive for merchants who want to use cryptocurrency to avoid credit card processing fees and users seeking affordable money transfers.

Growing merchant adoption
Over 2,500 merchants worldwide now accept Bitcoin Cash through payment processors like BitPay, CoinGate, and Coinbase Commerce. Merchants benefit from BCH's low fees and lack of chargebacks. 

Established market position
Bitcoin Cash currently has a market cap of approximately $10 billion, making it one of the world’s biggest cryptocurrencies. BCH has survived multiple boom and bust cycles, and still has an active development team working to improve the network. 

Recent protocol upgrades
The May 2025 Velma hard fork introduced VM Limits and BigInt capabilities, enabling more complex smart contracts. These upgrades position BCH to compete with newer blockchains in DeFi applications while maintaining sub-penny transaction fees. 

Limited supply and deflationary model
Like Bitcoin, Bitcoin Cash has a fixed maximum supply of 21 million coins, with approximately 19.95 million BCH currently in circulation. This cap on supply prevents runaway inflation. 

Bitcoin security with improved scalability
BCH inherits Bitcoin's Proof-of-Work security model using the SHA-256 algorithm, providing battle-tested network security. The larger block size addresses Bitcoin's scalability limitations while maintaining the same security features. 

Bitcoin Cash's market capitalization exceeds $10 billion with a circulating supply of nearly 20 million BCH. Daily transaction volume remains active, with the network processing thousands of transactions while maintaining consistent sub-penny fees. 

However, stablecoin options like USDC and USDT have become more popular for merchants looking to use cryptocurrency for transactions. 

What is Bitcoin Cash?

Bitcoin Cash is a cryptocurrency created in 2017 through a hard fork of the Bitcoin blockchain. The network was designed to function as peer-to-peer electronic cash with faster transaction speeds and lower fees than Bitcoin.

How does Bitcoin Cash work?

Bitcoin Cash addresses Bitcoin's scalability challenges by using larger block sizes. Bitcoin Cash can process transactions more efficiently because blocks can hold up to 32MB of data compared to Bitcoin's 1MB limit. This allows BCH to handle 100 transactions per second, compared to 7 transactions per second for BTC. 

The larger block size means lower fees and faster confirmation times for users. Transactions typically cost less than one penny, which means that Bitcoin Cash could theoretically be used for everyday transactions. 

How does Bitcoin Cash verify transactions? 

Bitcoin Cash uses Proof-of-Work consensus with the SHA-256 hashing algorithm, the same security model as Bitcoin. Miners compete to validate transactions and add new blocks to the blockchain.

Unlike Bitcoin, BCH implements a unique difficulty adjustment algorithm called ASERT. This system adjusts mining difficulty every block rather than every 2,016 blocks, allowing the network to respond quickly to changes in mining power. The result is more consistent block times and reliable transaction confirmations.

What is BCH?

BCH is the native token of the Bitcoin Cash network. The cryptocurrency is used to pay transaction fees and miners for securing the blockchain.

Bitcoin Cash maintains the same 21 million coin supply cap as Bitcoin. Approximately 19.95 million BCH currently circulate, representing 95% of the maximum supply. Like Bitcoin, BCH follows a halving schedule where mining rewards decrease over time. 

What are the risks of investing in Bitcoin Cash?

Extreme volatility and significant drawdowns
Bitcoin Cash has experienced severe price swings throughout its history. After reaching an all-time high of $4,355 in December 2017, BCH lost 95% of its value, dropping to around $76 by December 2018. 

Competition from alternative payment solutions
Bitcoin Cash faces intense competition from faster blockchains and stablecoins. Despite launching in 2017, BCH has fallen behind newer competitors. 

Networks like Solana offer similar low fees with even faster transaction speeds. Stablecoins like USDC and USDT provide price stability that makes them more practical for everyday payments. Meanwhile, Ethereum Layer 2 networks combine low fees with smart contract functionality.

Slow ecosystem development compared to competitors
Development activity on Bitcoin Cash lags significantly behind networks like Ethereum and Cardano. BCH has approximately 55,000 active addresses with 300,000 coins transacted daily, indicating limited real-world usage compared to other blockchains.

Limited differentiation from Bitcoin
Despite its technical advantages, Bitcoin Cash struggles with branding confusion and market positioning. 

Many investors still view Bitcoin as the dominant cryptocurrency, leaving BCH as a secondary alternative. The name similarity creates confusion for newcomers, and BCH has failed to establish a distinct identity that would justify its existence alongside Bitcoin. 

Dependency on Bitcoin
BCH price movements strongly correlate with Bitcoin, often following BTC's trend direction. The cryptocurrency struggles to establish independent value drivers that would allow it to outperform BTC during bull markets. 

How does Bitcoin Cash compare to competitors?

Let's compare Bitcoin Cash to Bitcoin. 

Bitcoin Cash vs. Bitcoin

Bitcoin is the original cryptocurrency and the most valuable digital asset in the world, with a market cap over $1 trillion. Bitcoin is widely recognized as digital gold and a store of value, with institutional adoption through spot ETFs and corporate treasury holdings.

Bitcoin's market dominance and brand recognition far exceed Bitcoin Cash. BTC has significantly more institutional support and payment acceptance.  

BCH does have one advantage: scalability. BCH offers faster, cheaper transactions for everyday payments, while Bitcoin prioritizes security and decentralization over transaction speeds. 

Bitcoin Cash's advantages:
BCH may be a better choice for fast, affordable on-chain transactions. The cryptocurrency remains more practical for microtransactions and cross-border payments where fees matter.

Where Bitcoin Cash struggles:
Bitcoin Cash lacks Bitcoin's network effects, institutional adoption, and brand recognition. BCH has not achieved widespread acceptance as a store of value like Bitcoin. Today, BCH’s market cap is roughly 1% of Bitcoin's. 

Bitcoin Cash historical performance

Early days (2017-2018)

Bitcoin Cash launched on August 1, 2017, at approximately $900. Anyone holding Bitcoin at the time of the fork received an equivalent amount of BCH. The cryptocurrency experienced immediate volatility as exchanges debated whether to list the new asset.

Early adoption was driven by supporters, like Bitcoin advocate Roger Ver, who believed Bitcoin needed larger blocks to scale.  

The first cycle ended dramatically when Bitcoin Cash reached $4,355 in December 2017, after Coinbase announced BCH support. The rally ended when the entire crypto market crashed in early 2018, and BCH lost over 95% of its value by December 2018. 

The 2021 bull run

Bitcoin Cash rose from approximately $400 in January 2021 to $1,636 in May 2021, representing a 410% increase. This rally occurred during the broader cryptocurrency bull market when retail and institutional interest surged across all digital assets.

The price increase was fueled by renewed interest in alternative payment cryptocurrencies and increasing adoption of crypto payments. The network benefited from Bitcoin's rising prominence, with some investors viewing BCH as an undervalued alternative.

The rally ended when cryptocurrency markets crashed in mid-2021. BCH fell 75% to around $400 by June 2021. 

Recent performance (2024-2025)

Bitcoin Cash entered 2024 trading around $400. While BCH saw some upwards price movement, it failed to meet the highs seen in previous cycles due to higher competition. 

BCH rose 75% in Q3 2025 following the Velma upgrade. It’s clear that BCH’s technical improvements have made investors more interested in the network. 

What's a good price prediction for Bitcoin Cash?

Making accurate cryptocurrency price predictions is difficult. The crypto market is influenced by adoption rates, regulatory changes, technological developments, and overall market sentiment, which makes it hard to make any forecast with certainty. 

Bitcoin Cash could grow if merchant adoption accelerates and the network successfully expands its smart contract capabilities. The recent protocol upgrades provide a foundation for DeFi applications that could drive new use cases. However, BCH must overcome intense competition from other payment-focused cryptocurrencies. 

How do I buy Bitcoin Cash?

Bitcoin Cash is available on major cryptocurrency exchanges including Coinbase, Kraken, Gemini, and Binance.US. 

Step 1: Create an account
Choose a reputable exchange and sign up with your email address and password. Select an exchange that operates in your jurisdiction and has a strong security track record.

Step 2: Verify your identity
Complete the exchange's Know Your Customer process by providing identification documents. Most exchanges require a government-issued ID and proof of address. Verification typically takes 24 to 48 hours. 

Step 3: Link a payment method
Connect a bank account or another payment method to fund your account and begin making cryptocurrency purchases. 

Step 4: Buy Bitcoin Cash

Navigate to the BCH trading pair and enter the amount you want to purchase. Review the transaction details, including fees, then confirm your purchase. The BCH will appear in your exchange account immediately.

Conclusion

Bitcoin Cash has established itself as a payment-focused cryptocurrency with fast transactions and low fees. The network's recent protocol upgrades have expanded its capabilities beyond simple payments into smart contracts. 

However, it’s important to note that BCH faces intense competition from alternative blockchains and struggles to differentiate itself from Bitcoin.