Given the recent volatility in the price of Bitcoin, investors willing to buy more Bitcoin or cash out their profits have faced several issues when using the number 1 cryptocurrency, such as high transaction fees and slow transaction times. Other major players such as Bitcoin Cash, Litecoin or Ethereum have been favoured by investors due to the low transaction fees and much faster settlement times.
As can be seen on social media, there is an on-going debate about the forked Bitcoin Cash replacing the original Bitcoin, with enthusiasts on both sides making a solid argument for each. So it might be a good idea to have a look at the actual data and statistics of what these transaction fees and times actually look like in comparison.
Bitcoin Core (BTC)
The original Bitcoin network is the most used network if we’re looking at the transaction percentages. Coinmarketcap gives a 42.8% dominance of Bitcoin in the whole cryptocurrency market whilst Blockchain.info estimates roughly 300,000 – 450,000 confirmed transactions daily.
Mempool is a term used to describe the pool where all the transactions are stored, also called the transaction queue. The mempool is currently full and has over 270,000 unconfirmed transactions according to Blockchain.info data.
According to Earn’s fee statistics, the median transaction size is 226 bytes and this amounts to a median transaction fee of 223,740 satoshis (approximately $34 dollars). Bitinfocharts records an average median fee of $41 per transaction, whilst Bitcoinfees.info gives an average transaction fee of $37.
Taking into account the amount of transactions per day, per block and the fee per transaction, Blockchain.info estimates an average transaction processing time of 34 to 1,188 minutes. Johoe’s mempool data explains that the transaction with lower fees are the ones that are getting processed later than normal or are even getting evicted sometimes.
Bitcoin Cash (BCC)
At the moment, the Bitcoin Cash network has fewer transactions per day than the Bitcoin Core blockchain. However, according to Bitinfocharts, BCH has experienced a spike in the number of transactions over 24 hours, with roughly 57,000 – 127,000 recorded daily. At the current trajectory, the BCH network is about to surpass the daily transaction rate of the Litecoin protocol.
Johoe’s mempool data regarding Bitcoin Cash reveals that the transaction queue is cleared quite frequently, which is not the case for the Bitcoin Core mempool. The same data indicates that both the mempool size in MB is much lower for the BCH network and for pending transaction fees.
The average transaction time for Bitcoin Cash is between 8 – 18 minutes. Importantly, the average transaction fee on the Bitcoin Cash network is $0.27 per transaction, with the median fee going up to an all-time high of $0.90 per transaction, according to aggregated data from Bitinfocharts.
There is a clear difference between the two networks both in terms of average speed and fee per transaction. Despite efforts from miners to clear the Bitcoin Core mempool, the backlog continues to grow as more and more transactions are added which is not the case with the Bitcoin Cash mempool, which is cleared consistently without any congestion.
Despite enthusiasts on both sides, time and the number of people using each network will be a very good indicator of what people prefer.