Many people, especially proponents of other cryptocurrencies, claim that Bitcoin Cash’s extremely low transaction fees—often below one cent—are merely a result of its current transaction volume being lower than that of Bitcoin (BTC). They suggest that if BCH adoption grew to match BTC’s level, fees would inevitably rise. However, this view misunderstands the fundamental technical and economic design of Bitcoin Cash.
In reality, BCH maintains consistently low fees not because of low demand, but due to deliberate engineering choices that prioritize scalability and user affordability.
How Bitcoin Cash Achieves Low Transaction Fees
Bitcoin Cash is designed with a flexible block size limit, which can be adjusted as network demand grows. Unlike BTC, which intentionally restricts block size to create artificial scarcity, BCH allows blocks to expand. This means that as transaction volume increases, the network can accommodate more transactions per block without congestion.
Here’s how it works:
- Ample Block Space: BCH currently supports significantly larger blocks than BTC, providing more room for transactions.
- Dynamic Scaling: The BCH development community is committed to increasing the block size well before demand reaches capacity.
- Mempool Management: Transactions are typically included in the next block, avoiding backlog and fee competition.
In this system, fees are determined mainly by the operational costs incurred by miners (such as data storage and transmission) rather than by users competing for limited block space.
Evidence from Real-World Usage
There have been multiple instances where BCH’s daily transaction volume surpassed that of BTC. Even during these periods, BCH fees remained stable at a fraction of a cent.
For example, public blockchain data shows that on days when BCH transaction counts exceeded BTC’s, the average fee on BCH stayed near zero. In contrast, BTC fees regularly spike during periods of high demand, sometimes reaching tens of dollars per transaction.
This real-world performance confirms that BCH’s low-fee model is sustainable under heavy usage—as long as the network continues to scale appropriately.
Impact of a Rising BCH Price on Fees
Another common concern is whether a increase in the value of BCH would make transactions more expensive over time. If the price of BCH rose significantly, wouldn’t fees denominated in dollars also increase?
The short answer is no—and here’s why:
Even if the price of BCH increased dramatically, the protocol includes mechanisms to adjust fee rates downward. Proposals and ongoing discussions within the BCH community aim to reduce the base fee rate as the value of BCH rises.
For instance:
- If the value of BCH increased 100x, the network could vote to reduce the fee per byte from 1 satoshi to 0.1 satoshis or lower.
- This would keep the real-world cost of transactions low, ensuring that BCH remains affordable for everyday use.
The goal is to maintain low transaction costs all the way up to global adoption scales.
How BCH Differs from Other Major Cryptocurrencies
It’s often suggested that high fees are an unavoidable trade-off for decentralized blockchain networks. However, this isn’t entirely accurate.
Bitcoin (BTC)
BTC suffers from high fees due to its limited block size—a design choice that leads to frequent congestion. This is more of a political than a technical limitation, and one that BCH explicitly avoids.
Ethereum (ETH)
Ethereum’s high gas fees stem from its account-based model, which is inherently less scalable than the UTXO model used by Bitcoin Cash. BCH’s UTXO structure allows for more efficient transaction processing and better scalability.
Frequently Asked Questions
Will BCH fees increase if transaction volume grows?
No. BCH is designed to scale block size in accordance with demand. As long as capacity grows ahead of transaction volume, fees will remain low.
Can BCH handle more transactions than Bitcoin?
Yes. BCH has already processed higher daily transaction volumes than BTC on several occasions without any increase in fees.
What happens if the price of BCH rises dramatically?
The BCH protocol and community are prepared to adjust fee rates downward to keep transaction costs low in real terms.
Why are BTC fees so much higher?
BTC intentionally limits block size, causing congestion during high demand. Users must bid higher fees to get their transactions included.
Is BCH’s scalability sustainable?
Yes. BCH uses a UTXO model, which is more scalable than account-based models like Ethereum’s, and its roadmap includes continued improvements in capacity.
Where can I learn more about BCH’s technical roadmap?
👉 Explore the latest development updates for detailed insights into ongoing and planned improvements.
Conclusion
Bitcoin Cash’s low transaction fees are a product of its scalable design and forward-looking economic policy—not merely a result of current demand levels. With a commitment to maintaining affordability and efficiency, BCH is well-equipped to serve as a practical payment solution even at a global scale. Whether transaction volume grows or the price of BCH increases, the network is designed to keep fees low, accessible, and predictable for all users.