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Bitcoin vs Bitcoin Cash Transaction Fees (High Transaction Throughputs)

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Written by   54
1 year ago

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A lot of people claim that the only reason Bitcoin Cash is cheap is because nobody uses it, and no transactions happen on it. I did my own research, and using bitinfocharts.com (a very useful website for cryptocurrency statistics), I compiled the transaction fees when Bitcoin and Bitcoin Cash were experiencing similar transaction volumes (amounts), and from the data, it is clear that Bitcoin Cash functions far better at transferring money. The craziest part about this is the fact that the Bitcoin Cash transactions would confirm in the next block, giving relatively fast transactions, while Bitcoin itself had confirmation times up to hundreds of minutes, and still is very slow to this day. I just saw a thread earlier today where someone wanted to make a transaction on chain, and they had to pay a 40 cent fee for the Bitcoin to transfer (which took ~3 hours). They only transferred a few dollars, so the transaction was pretty much eaten up by the fees.


Someone made a thread related to these high transaction fees in r/Bitcoin back in 2016, and the mods deleted his original post:

https://www.reddit.com/r/Bitcoin/comments/48m9xq/average_confirmation_times/


Another argument I hear supporting Bitcoin is that it is the most secure network, and while that is true at face value, there's more to it than that. People tend to cite https://howmanyconfs.com/ as the website to support the idea that Bitcoin is the most secure network. The problem is that the security payoff is objectively worse. Bitcoin Cash might be 35x slower to get the equivalent security of the 6 confirmations on Bitcoin, but this completely ignores the fees needed to make such a transaction. If I want a 1 input, 1 output transaction with the same fees as Bitcoin Cash, I would have to wait for 504 blocks (minimum), and the fees would still be higher than that of Bitcoin Cash. After waiting 3.5 days, I think it's safe to say that the Bitcoin Cash transaction is already significantly more secure than the Bitcoin transaction after having 504 confirmations, when the Bitcoin transaction only has 1.


I think it's crazy that despite how much objectively better Bitcoin Cash is when compared to Bitcoin, I've never really seen anyone switch over and start supporting Bitcoin Cash instead of Bitcoin (mostly for price and speculative reasons).

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Avatar for IMightBeAPenguin
Written by   54
1 year ago
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