Bitcoin Cash (BCH): The Great "Betrayal" in Crypto History

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Bitcoin, the pioneer of all cryptocurrencies, has long stood as the gold standard in the digital asset world. Despite countless imitations and forks, none have dethroned it. Among these offshoots, Bitcoin Cash (BCH) stands out—not just for its technical divergence, but for the controversy it sparked within the crypto community. Born from a hard fork in 2017, BCH emerged as a bold challenger to Bitcoin’s dominance, championing faster transactions and lower fees. While some branded it a betrayal, others saw it as a necessary evolution.

This article dives deep into the origins, philosophy, and ongoing impact of Bitcoin Cash—exploring whether it was a rebellious coup or a justified upgrade to a stagnating network.

The Sudden Fork: How Bitcoin Cash Came to Be

In July 2017, the cryptocurrency world witnessed one of its most dramatic events—the birth of Bitcoin Cash (BCH) through a hard fork from the original Bitcoin blockchain.

A hard fork occurs when a blockchain splits into two separate chains due to incompatible protocol changes. Unlike soft forks, which maintain backward compatibility, hard forks create entirely new coins with different rules. In this case, BCH was created to address a growing issue: Bitcoin’s scalability problem.

When Bitcoin was first launched, each block had a 1MB size limit. As transaction volume surged over the years, this cap caused network congestion, slow confirmations, and rising fees. Multiple proposals were made to scale Bitcoin, but consensus remained elusive.

One such solution was SegWit (Segregated Witness), which restructured transaction data to free up block space. Litecoin successfully implemented SegWit first, putting pressure on Bitcoin’s developers to follow suit. Eventually, SegWit gained community approval and was activated in August 2017—with an effective block capacity increase to around 2MB.

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But not everyone agreed with this path.

A faction led by mining giant ViaBTC, backed by Bitmain and its then-CEO Jihan Wu, believed SegWit was insufficient and overly complex. They advocated for a simpler fix: increase the block size directly. On August 1, 2017, they executed a hard fork, launching Bitcoin Cash with an 8MB block size limit, removing SegWit entirely, and restoring certain opcodes for smart contract functionality.

This move effectively created a parallel chain—same history up to the fork point, but diverging afterward. To many, it felt like a rebellion. To others, it was progress.

Was It a Betrayal—or an Upgrade?

Labeling Bitcoin Cash a "betrayal" oversimplifies a deeper ideological split within the crypto community.

At its core, the fork reflected two visions:

With larger blocks, BCH could handle more transactions per second, offer faster confirmations, and charge significantly lower fees—sometimes less than $0.01 per transaction. For users frustrated by Bitcoin’s high fees during peak times, BCH offered a compelling alternative.

Some even began calling Bitcoin Cash the "real" Bitcoin, arguing that Satoshi Nakamoto’s original whitepaper described a payment system—not a scarce digital asset. Proponents like Roger Ver, often dubbed “Bitcoin Jesus,” shifted allegiance to BCH, claiming it better fulfilled Bitcoin’s original purpose.

Yet, despite its technical advantages, BCH never overtook BTC in market dominance. Why?

Because value isn't just about technology—it's also about perception, network effects, and brand recognition. Bitcoin’s first-mover advantage, widespread adoption, and cultural significance have cemented its status as the flagship cryptocurrency.

So did BCH attempt a hostile takeover? Not quite. It wasn’t about dethroning Bitcoin—it was about offering a different path forward.

Building an Independent Ecosystem

While Bitcoin Cash may not replace Bitcoin, it has carved out its own niche in the crypto landscape.

After initial criticism over centralization concerns—especially given Bitmain’s strong influence—BCH has gradually evolved. Today, it boasts:

These upgrades have introduced features like:

Moreover, BCH has focused heavily on real-world utility. Projects once abandoned on Bitcoin due to high fees have found new life on the BCH chain. From micropayments platforms to social media tipping systems, developers are leveraging BCH’s low-cost infrastructure to build practical applications.

For example:

This focus on usability aligns perfectly with BCH’s mission: to be money you can actually spend.

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FAQ: Common Questions About Bitcoin Cash

Q: Is Bitcoin Cash just a copy of Bitcoin?
A: While BCH shares Bitcoin’s early transaction history and codebase, it operates on a separate blockchain with different rules—most notably larger block sizes and no SegWit. It is not a clone but a distinct cryptocurrency.

Q: Can I mine both Bitcoin and Bitcoin Cash?
A: Yes. Since both use the SHA-256 hashing algorithm, miners can choose which chain to support. However, most miners allocate resources based on profitability and network difficulty.

Q: Why is Bitcoin Cash controversial?
A: Critics argue that large blocks compromise decentralization by making it harder for regular users to run full nodes. Supporters counter that usability should come first and that infrastructure can adapt.

Q: Does Bitcoin Cash have a future?
A: Its long-term success depends on adoption. If merchants and users embrace it for daily payments, BCH could thrive as a global peer-to-peer cash system—even without surpassing Bitcoin.

Q: What happened to Jihan Wu and Bitmain’s role in BCH?
A: While Bitmain played a pivotal role in BCH’s creation, the ecosystem has since diversified. Jihan Wu remains influential but no longer controls the direction of the project single-handedly.

Q: Is Bitcoin Cash secure?
A: Yes. With substantial hash rate backing and regular audits, BCH maintains strong security comparable to other top-tier blockchains.

The Road Ahead: Vision Over Hype

Bitcoin Cash may never claim the throne held by BTC—but that doesn’t mean it lacks purpose.

Its strength lies in its clarity of vision: fast, cheap, reliable digital cash for everyone. While Bitcoin evolves into a settlement layer and store of value, BCH aims to be the coin you use at the grocery store or online checkout.

And in a world where financial inclusion remains a challenge, that vision matters.

Whether you see it as a rebellious splinter group or a rightful heir to Satoshi’s original dream, one thing is clear: Bitcoin Cash is here to stay.

As blockchain technology matures, having multiple paths forward ensures resilience and innovation across the ecosystem. And perhaps—just perhaps—the true winner isn’t determined by market cap alone, but by who serves the most people best.

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