Bitcoin Cash: what it is and how it works
Bitcoin Cash is a peer-to-peer payment coin forked from Bitcoin in 2017. It runs its own proof-of-work network and is taxed as property in the US.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
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Bitcoin Cash came from a disagreement over how to scale Bitcoin. Supporters wanted larger blocks for more payments. It has no company behind it and no central issuer.
How does Bitcoin Cash work?
Bitcoin Cash is a proof-of-work blockchain. Miners solve a puzzle, add blocks of transactions, and the network follows the longest valid chain. Users have addresses and private keys. A transaction is confirmed when a miner includes it in a block, and the winning miner earns new coins and transaction fees.
Who created Bitcoin Cash and when?
Bitcoin Cash launched on August 1, 2017, as a fork of Bitcoin. Developers and miners who wanted larger blocks created it. Bitcoin was created in 2008 by Satoshi Nakamoto. Bitcoin Cash has no single founder.
How is it different from Bitcoin?
Bitcoin Cash and Bitcoin share code history but followed different paths. The disagreement was over block size. Bitcoin SV forked from Bitcoin Cash in November 2018 after a further dispute.
What risks and legal rules apply?
Bitcoin Cash carries the risks of any public cryptocurrency. Its value can rise or fall sharply. Transactions are pseudonymous, not anonymous. In the US, the IRS treats cryptocurrency as property, so selling or spending can create a taxable gain or loss.
Bitcoin price todayLive price, charts and market data live in our Coins section.Frequently asked questions
Not recommended. They are separate networks, and sending Bitcoin Cash to a Bitcoin address can cause the funds to be lost. Choose the Bitcoin Cash network before you send.
You can store it in software or hardware wallets, or on a custodial exchange. If you hold the private keys, you control the coins. If an exchange holds them, that company controls them.
Yes. It has its own nodes, miners and proof-of-work blockchain. Its mining power is usually smaller than Bitcoin's.
