What is Bitcoin Cash, and how can you buy it?

In early 2017, Bitcoin was meant to undergo a software upgrade called Segregated Witness, or SegWit. One important reason for implementing the SegWit upgrade was to mitigate the limitations imposed by Bitcoin's block size of 1 MB. While the small block size makes the network more secure, it also results in slower transaction speeds and inhibits scalability. SegWit was meant to increase transaction speeds on the Bitcoin network and allow the cryptocurrency to scale without having to increase the block size.

A part of the Bitcoin community, however, believed that the SegWit upgrade was not enough to address Bitcoin's scalability problems. They claimed that while the update might improve transaction speed, a block size of 1 MB will continue to limit the crypto from scaling. An increased block size could increase the number of transactions per second, making the system more efficient while reducing transaction fees. By improving the cryptocurrency's scalability, an increased block size could lead to wider adoption, eventually fulfilling the aim of its founder to create a global digital currency.

This split in the Bitcoin community resulted in the creation of a hard fork in 2017 that had a larger block size than the Bitcoin network, and it was called Bitcoin Cash. The block size on the Bitcoin Cash hard fork was increased to 8 MB (which was later increased to 32 MB). The original Bitcoin chain underwent the SegWit upgrade and retained its block size of 1 MB. When the fork was created, anyone who owned Bitcoin received an equal number of Bitcoin Cash coins.

In 2018, The Bitcoin Cash network experienced a hard fork, and a new cryptocurrency, Bitcoin Satoshi's Vision (Bitcoin SV), was created. It had a larger block size of 128MB (now extended to 4GB). The reason for the creation of Bitcoin SV was similar to that of Bitcoin Cash – a faction of the Bitcoin community believed the block size needed to be larger to allow the cryptocurrency to scale.

Bitcoin, Bitcoin Cash and Bitcoin SV have since been separate cryptocurrencies and are independent of each other.

The difference in block size is the primary difference between Bitcoin and Bitcoin Cash. Other differences between the cryptocurrencies mainly stem from having different block sizes as well.

Bitcoin and Bitcoin Cash both have a block time of 10 minutes, meaning a block is added to the blockchain roughly every 10 minutes. Bitcoin, however, can only process seven transactions per second, whereas Bitcoin Cash can process over a hundred transactions per second. This allows Bitcoin Cash to accept more transactions and accommodate more users, thus allowing it to scale.

The higher TPS on the Bitcoin Cash network also lowers network operating costs. This, in turn, reduces the transaction fees that users have to pay.

The larger block size reduces the mining power needed to mine blocks, making the Bitcoin Cash blockchain relatively less secure. Another advantage Bitcoin has over Bitcoin Cash is that it is more widely adopted (as of 2022).

If you've decided to buy Bitcoin Cash or any other cryptocurrency, remember crypto is a volatile asset. Prices are known to wildly increase and then drop suddenly without warning, often leading to huge profits or severe losses for investors. Keeping in mind the volatility of cryptocurrencies, you might want to limit the amount you invest in them to something you can afford to lose. It could also help to speak with a financial advisor to get some guidance on growing your wealth sustainably. 

To buy, sell or trade Bitcoin Cash: 

• Make sure to compare cryptocurrency exchanges to find one that lists Bitcoin Cash. Different cryptocurrency exchanges may charge you varying fees. You also won't find every cryptocurrency on every exchange. Make sure to analyse the features, fees and benefits of different cryptocurrency exchanges before you sign up on one. You could also check if an exchange is registered with AUSTRAC to ensure it complies with local laws and regulations.
• Create an account on your chosen platform and complete the Know Your Customer (KYC) process, which is a legal requirement in Australia.
• Once your account is active, transfer funds using supported payment methods (credit card, PayPal, etc.).
• With funds in your crypto wallet, you can buy and trade Bitcoin Cash or any other supported cryptocurrency.