Bitcoin Cash (BCH) as a High-Potential Alternative to Bitcoin in the Electronic Cash Narrative

In the evolving landscape of digital currencies, Bitcoin Cash (BCH) has emerged as a compelling contender to Bitcoin (BTC) in the electronic cash narrative. The May 2025 Velma fork marked a pivotal moment for BCH, introducing technical upgrades that position it as a scalable, low-cost, and programmable alternative to Bitcoin. This article examines BCH's post-Velma fork advancements, comparing its technical, market, and adoption advantages to Bitcoin, and evaluates its potential to redefine the electronic cash paradigm.

Technical Advantages: Scalability and Programmability

The Velma fork fundamentally reshaped BCH's technical capabilities. By removing constraints on smart contract development through VM Limits, BCH now supports stack element sizes of up to 10,000 bytes-far exceeding Bitcoin's 520-byte limit. This expansion, coupled with a budgeting system that allocates computational resources based on transaction input sizes, reduces node processing requirements by up to 50%. These changes enable BCH to handle complex financial applications, such as decentralized finance (DeFi) protocols and cross-chain bridges, while maintaining low fees.

Additionally, the BigInt enhancement introduced in the Velma fork allows high-precision arithmetic calculations, critical for advanced financial modeling. This feature addresses a key limitation of Bitcoin, which lacks native support for such computations. Meanwhile, BCH's 32 MB block size-compared to Bitcoin's 1 MB-ensures faster transaction throughput and near-zero fees, even during peak demand. For instance, BCH's average transaction fees in 2025 remain under $0.01, while Bitcoin's fees fluctuate between $1 and $100, depending on network congestion.

Market Performance: Growing Utility and Investor Interest

BCH's post-Velma fork upgrades have catalyzed renewed investor interest. By late 2025, BCH traded at approximately $551, with analysts projecting a potential rise to $600 under favorable market conditions. This growth is underpinned by BCH's expanding utility as a payment solution. On-chain data reveals a 30% year-over-year increase in transaction volume, reaching $50 billion in 2025. This surge reflects BCH's ability to serve as a practical medium of exchange, particularly in markets where low-cost, fast transactions are prioritized.

In contrast, Bitcoin's dominance in the crypto market remains strong, with a 60%+ share of the total market cap. However, Bitcoin's technical limitations-such as its 1 MB block size and reliance on layer 2 solutions for scalability-make it less suited for everyday transactions. While Bitcoin's network processes an average of 535,000 daily transactions, BCH's larger block size and optimized fee structure position it as a more viable option for merchants and consumers seeking efficiency.

Adoption Metrics: Merchant and Ecosystem Growth

BCH's adoption metrics highlight its growing traction in the real world. As of 2025, over 553,330 merchants globally accept BCH, supported by 80 payment gateways that facilitate seamless integration. This adoption is further evidenced by a 15% increase in active addresses, signaling broader network participation. While Bitcoin remains the dominant cryptocurrency in merchant transactions (accounting for 42% of all crypto payments), BCH's focus on low fees and fast settlement times is attracting a niche but expanding user base.

However, BCH faces challenges in ecosystem adoption. Its Total Value Locked (TVL) in DeFi protocols remains relatively low compared to Ethereum and Solana. This gap underscores the need for further developer engagement and ecosystem growth. Nevertheless, the Velma fork's smart contract enhancements have laid the groundwork for BCH to attract innovative projects, potentially bridging this divide.

Conclusion: A Rival in the Electronic Cash Narrative

Bitcoin Cash's post-Velma fork upgrades have solidified its position as a high-potential alternative to Bitcoin in the electronic cash narrative. Technically, BCH's larger block size, VM Limits, and BigInt capabilities offer superior scalability and programmability for real-world use cases. Market data and adoption metrics further demonstrate BCH's growing utility as a payment solution, with transaction volumes and merchant partnerships expanding rapidly. While Bitcoin's dominance in the crypto market remains unchallenged, BCH's focus on efficiency and accessibility positions it as a complementary asset in the broader digital economy.

For investors, the key takeaway is clear: BCH's post-Velma fork trajectory suggests a compelling case for long-term value, particularly for those prioritizing low-cost, high-throughput transactions. As the electronic cash narrative evolves, Bitcoin Cash may well emerge as the underdog with the tools to rival the king.