How to buy Bitcoin Cash (BCH) in the UAE

What is Bitcoin Cash?

Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that emerged in August 2017 as a hard fork of the original Bitcoin (BTC) blockchain. The fork was driven by disagreements within the Bitcoin community over how best to scale the network to handle more transactions at lower cost. Proponents of Bitcoin Cash favored on-chain scaling via larger block sizes, aiming to preserve Bitcoin’s original vision as digital cash for everyday payments—fast, inexpensive, and reliable.

As a separate blockchain, Bitcoin Cash shares much of Bitcoin’s codebase, monetary policy philosophy (fixed supply cap of 21 million coins), and core cryptographic primitives. However, it diverges in protocol-level parameters, fee dynamics, and strategic focus on transactional throughput and usability as a medium of exchange.

Reputable sources for background and positioning:

• Bitcoin Cash official site and developer resources (bitcoincash.org)
• Bitcoin.org and Bitcoin wiki for historical context
• Coin Center and academic research for policy and technical perspectives

How does Bitcoin Cash work? The tech that powers it

• Consensus mechanism: Bitcoin Cash uses Proof of Work (PoW) with the SHA-256 hashing algorithm, akin to Bitcoin. Miners compete to add blocks to the chain by solving cryptographic puzzles, securing the network and ordering transactions.

• Block size and throughput: BCH increased the maximum block size relative to Bitcoin. Early in its lifecycle, BCH set an 8 MB limit, later raising it substantially (e.g., to 32 MB). Larger blocks allow more transactions per block, reducing congestion and enabling low fees during normal network conditions. In practice, actual used block sizes vary with demand.

• Transaction fees: By prioritizing on-chain capacity, BCH typically maintains very low median transaction fees compared to BTC. Low fees support microtransactions and merchant payments.

• Difficulty adjustment: BCH employs a Difficulty Adjustment Algorithm (DAA) to recalibrate mining difficulty roughly every block based on recent block times, targeting a 10-minute average interval. This prevents hash-rate shocks (e.g., miners switching chains) from stalling confirmations for extended periods.

• Address formats: BCH introduced the CashAddr format to reduce user errors, particularly around cross-chain confusion with BTC addresses. CashAddr is a base32-encoded format prefixed with “bitcoincash:” for clarity and improved checksum reliability.

• Script and smart contracts: Like Bitcoin, BCH uses a stack-based scripting language (Bitcoin Script) for transaction locking/unlocking. BCH restored or enabled certain opcodes previously disabled in Bitcoin and supports features like:

  • OP_CHECKDATASIG for oracles and data validation
  • OP_RETURN for embedding small data
  • Covenant-like constructs via script patterns (with caution) While not a general-purpose smart contract platform like Ethereum, BCH enables payment channels, multi-signature wallets, timelocks, and other programmable money primitives.

• Transaction validation and nodes: Full nodes verify signatures, enforce consensus rules (block size, script rules, difficulty), and propagate transactions/blocks across the peer-to-peer network. Lightweight/SPV wallets verify via block headers and Merkle proofs, trading some trust for convenience.

• Ecosystem tooling: BCH supports standard Bitcoin-derived tooling—hardware wallets, payment gateways, POS solutions, and merchant integrations. Multiple node implementations (e.g., Bitcoin ABC historically, Bitcoin Cash Node, BCHN derivatives) contribute to client diversity and network resilience.

What makes Bitcoin Cash unique?

• Focus on everyday payments: BCH’s design prioritizes low fees and fast confirmations to function as day-to-day money. This differentiates it from BTC’s “digital gold” narrative that emphasizes security and scarcity over base-layer throughput.

• Larger blocks and simple UX: By scaling on-chain, BCH aims to minimize fee markets and avoid complex off-chain routing overhead for typical users. This makes it approachable for merchants, tipping, remittances, and microtransactions.

• Merchant adoption initiatives: The BCH community has long pushed real-world commerce use, fostering payment processors, wallet integrations, and grassroots adoption campaigns. While adoption varies by region, BCH is commonly featured in crypto POS services and e-commerce plugins.

• Compatibility with Bitcoin infrastructure: Sharing SHA-256 mining and much of Bitcoin’s technical DNA enables straightforward integration into existing crypto services and hardware.

Bitcoin Cash price history and value: A comprehensive overview

• 2017 launch and initial volatility: Following the August 2017 hard fork, BCH was airdropped 1:1 to BTC holders on supporting platforms. Price discovery was turbulent, with BCH briefly spiking to several hundred dollars and, during extreme market phases, surpassing $3,000 amid the late-2017 crypto bull run.

• Cyclical dynamics: Like many cryptoassets, BCH has traded in cycles aligned with broader market sentiment, Bitcoin halving narratives, and liquidity conditions. Peaks in 2017 and 2021 coincided with industry-wide bull markets; troughs reflected risk-off periods, regulatory uncertainty, and competition from other payment-oriented chains.

• Relative performance: Over time, BCH’s market share and ranking have fluctuated. Its performance relative to BTC has generally trended downward as Bitcoin’s store-of-value thesis strengthened and as alternative L1s/L2s captured payments and DeFi narratives. Nevertheless, BCH has maintained significant liquidity, exchange listings, and a durable community.

• Fundamental value drivers:

  • Network usage: On-chain transaction counts, active addresses, and merchant integrations can support utility-driven demand.
  • Fee environment: Low, predictable fees may attract micropayments and remittance use cases.
  • Hash rate and security: Sustained mining participation reduces reorg/attack risk and bolsters trust.
  • Developer momentum: Protocol upgrades, wallet UX, and tooling impact adoption.
  • Macro and regulatory climate: Risk appetite, monetary conditions, and policy outcomes influence valuation.

Note: For current price, market cap, and volume, consult reputable data providers like CoinGecko, CoinMarketCap, Messari, or The Block, as figures change frequently.

Is now a good time to invest in Bitcoin Cash?

This depends on your thesis, risk tolerance, and time horizon. Consider the following:

• Investment thesis fit:

  • Medium of exchange play: If you believe in crypto as everyday money with on-chain payments and low fees, BCH aligns with that view.
  • Diversification: BCH offers exposure to a Bitcoin-derivative PoW asset with a payments focus, which may or may not complement a BTC-centric portfolio.

• Key strengths:

  • Low fees and high on-chain capacity for predictable payments.
  • Mature infrastructure and wide exchange support.
  • Simple, Bitcoin-like model with transparent monetary policy.

• Key risks:

  • Competitive landscape: BTC with Lightning and other L2s, as well as alternative chains with different consensus designs, compete for payments use cases.
  • Relative hash rate: Lower security budget compared to BTC may concern some institutional users.
  • Narrative headwinds: Market preference has often favored BTC’s store-of-value and other ecosystems’ programmable finance, potentially limiting BCH’s upside.
  • Governance and cohesion: As with many open-source communities, forks and client disagreements can create uncertainty.

• Due diligence checklist:

  • Review current network metrics: hash rate, fees, active addresses, block utilization.
  • Assess merchant acceptance and wallet ecosystem in your region.
  • Read recent protocol updates and roadmaps from leading node teams.
  • Evaluate liquidity and custody options on your chosen platforms.
  • Determine position sizing appropriate for high-volatility assets.

This is not financial advice. If you’re unsure, consider consulting a qualified financial advisor and only invest what you can afford to lose.