I ran a test of Bitcoin vs Bitcoin Cash on FEES & TRANSACTION TIME
I decided to run a test today, comparing the fees and transaction times for Bitcoin and Bitcoin Cash transactions at the same time. Yesterday I interviewed Roger Ver of Bitcoin Cash in a "1st on Steemit" interview, which you can check out here: https://steemit.com/dtube/@davidpakman/zp9x9utr
Two of his primary selling points around Bitcoin Cash were cheaper and faster transactions than Bitcoin, and I decided to test those two variables today.
At 4:03pm eastern US time, I started transactions for both Bitcoin and Bitcoin cash withdrawals from the same exchange.
Speed:
The Bitcoin transaction arrived and confirmed at 4:45pm, a total of 42 minutes in transaction time.
The Bitcoin Cash transaction arrived and confirmed at 5:54pm, a total of 111 minutes in transaction time.
Winner: Bitcoin
Fees:
The fees for the Bitcoin transaction were .001 BTC, or U$D15.85 at the time of the transaction.
The fees for the Bitcoin Cash transaction were 0.00001980 BCC, or U$D0.0686 at the time of the transaction.
Winner: Bitcoin Cash
Overall:
For my two transactions, both initiated at 4:03pm eastern time today, the Bitcoin Cash transaction was 99.56% less expensive, but took 164% longer to confirm and make the funds available.
For future transactions, my decision would be: Is it worth paying an extra $15.78 to complete the transaction in 62% less time?
How will both fees and transaction time evolve over time? Are there particular reasons this one Bitcoin Cash transaction took so long? Any other thoughts? Please let me know in a reply!
How did the transactions take so long? Did you use very small fees? Normally they should both confirm within 5 minutes, provided you use proper fees.
I didn't set fees manually. I didn't realize you could. How do you set the fees with platforms like, Coinbase, Bittrex, and Binance?
You can't set the fees with exchanges, you must do the test between to wallets, I recommend doing the experiment using two computers that you have with exodus.io downloaded and do a bitcoin and bitcoin cash transaction. Bitcoin cash will be just as fast as bitcoin but much cheaper but there is more to why bitcoin cash in the long run won't be as decentralized as bitcoin, which wasn't discussed in the interview and that was an in-depth explanation of block-size.
Unfortunately, they just have a standard deduction fee depening on the Currency you are moving, end result is that the recipient will received the total minus the deduction.
Got it
Besides, litecoin is multitudes faster than both bitcoin and bitcoin cash, at confirming transactions and with low fees comparable to bitcoin cash.
C'mon @davidpakman! You are the brand new star of steemit! Many people will read this post and therefore it is quite important that you state where you sent your transactions through..
You must send these from a wallet, as exchanges do not immediately process ANY request, and mostly they are totally shady in that regard.
You should state these things in your blog.. many newbies will get the wrong impression about this post!
You have to send from a wallet, and there are so many variables still..
This is not an accurate way to test.
You don't know when the exchange actually initiated the transfer. Just because you hit the withdrawl button on an exchange, that doesn't mean the withdrawl transaction is immediately initiated.
An exchange will wait until it has a build up of funds to transfer and then perform the actual transaction with all of them at once (to save on fees).
If you really want to compare the two then you need to send coins between two wallets that you control. That'll give you an accurate picture.
I'd recommend you try it again between your own two wallets and then post your results. I bet they're much different.
Thanks very good post @sydesjoke !!!!
Awesome Work!
Keep it up!!!
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You're being nicer than I will be. This article was a pile of turd; done with no real research, by a total amateur in the field. The median BCH transaction fee in December was 2 minutes long and was 2 pennies. I've done hundreds of tx and the money is usually there almost instantly, with some confirmations finishing 5 minutes later. For him not to realize that wallet to wallet is the only way to really test speeds, and to have done this from an exchange, it's absolutely a joke.
I don't feel like he's intentionally misleading people, he just doesn't have the full understanding of the space yet. When he posts stuff like this on Steemit, where the community knowledge level of the crypto space is higher than most other places, he's going to very quickly have inacurracies pointed out and as a result will learn.
The more folks we have learning about crypto and the space, the better.
He has made over $200 for his post compared marc five cents worth. I am new to steem and I recently bought some steem power. I think a lot more coinbase customers like myself would buy more steem power if they allowed you the option to buy it with the bitcoin cash that was given to bitcoin holders recently. Thats my two cents in. Happy Christmas and looking to get more involved in 2018.
True, but this is a reflection of the large amount of followers that he has built, which in turn generates a large amount of reward for content. He has spent a long time building up a user base and now, at this point, anything that he posts will be rewarded at a high level because of it, even when the content isn't that great. Networking is a big part of Steem, you'll actually find that it often plays a much bigger role than the actual content when it comes to rewards.
You're definitely right about that.
Welcome to the platform, I hope you enjoy it here.
As Eddie Murphy said in Trading Places. I believe I can hang out with you fellas. Looking forward to learning and sharing in 2018.
LoL
Screw people who are trying to learn and post the question publicly, right? I mean, it's not like someone else might learn from their mistake.
I would cosign that suggestion... but wouldn't want you to pay those fees again... maybe just test out a BCH transaction... Likely 5 minutes or less.
The real problem is that Pakman is a novice who want to pretend that he is knowledgable. Pretence is something that you want to aware of when it come to agenda setting personalities.
Well worth the $200+ in upvotes for posting this incredible analysis ;-)
I think that it is an accurate way to test. In general we are only interested in the user end experience. So the user end experience is the only part that needs to be tested. But you are correct that there are more accurate methods to test the inner working of the transfer.
What is the end user experience? Someone buying and selling coins on a specific exchange? Internal trades happen almost instantly. Someone paying something online with their Android wallet? They come in many flavors. Crypto is not yet at a stage where someone can use it without actually having to learn at least something first.
Appreciate your thoughts, but the reason that statement is wrong is because (as his title states) he is testing BTC and BCC transaction times. This test is not accurate because he is using a control group as a consistent (the exchange) that he has no control over.
It's the same as saying "I'm going to test which airplane is better by seeing which one makes it to my city first. Ready, Go!" Obviously whichever company gets the plane off the ground and into the air first is going to have a headstart on getting their model of plane to you first.
So really he's testing the company not the product. If his title were "How do Bitcoin and Bitcoin Cash transactions compare when sent from ABC Exchange?" Then it would be a more accurate test. And even that test would be worth about nothing because you'd have to collect a ton of different data points before a true average set in.
If that's the case, with this test, your subject is the Exchange not the coins and as such no opinion at all should be drawn about said coins. That's not what's being tested here.
Really? Which other ways do you think its the best?
Estou pensando em realizar um teste desse modo, obrigado pela dica!!
Costs Trump Speed. 99.6% cheaper??? NO-BRAINER!
I just posted a rant about Bitpay not working with Exodus wallets. Basically, I have to transfer my BTC from Exodus to Electrum ($50 cost) before I can send it out over the BitPay network (yet another transaction fee).
https://steemit.com/bitcoin/@sirstacksalot/bitcoin-payment-protocol-sucks-for-us-exodus-users
I hope BCH stomps the SH#*# out of BTC for that reason alone!
Arent also fees declining on the Bitcoin Core network now as prices are crashing? Unconfirmed are at 200k now, down from over 300k two days ago.
Indeed a nice experiment.. how about adding more altcoin and do the same test
Thanks for the info . I love steemit because it keeps us up to date on all blockchain related updates thanks for your hard work!
I don't think there's any debate on which one scales better (cheaper and faster) I think it comes down to which one is more decentralized and secure. If speed and txs speed were the most important aspect than both would be at the bottom of the list of the entire alt market.
Ver talked abou the network effect in your interview. My belief is that the core devs will improve the protocol, i.e. faster confirmation times by implementing what Bitcoin Cash originally proposed, when Bitcoin Cash becomes a threat. Given that, I don't see Bitcoin Cash competing once Bitcoin brings down the transaction fees and lower confirmation times. User inertia on Bitcoin network is a real thing, just like user inertia on other platforms.
What about the security of BCash is this important for you?
If you want to buy a coffee with your cryptos then BTC is may not be the right asset to use it for.
If you want to store in a secured proven way since years, then there is BTC still proven unhacked.
Security is important to me. I am learning as much as I can about all of these options.
Not sure I agree with this at present. BT Cash is exactly the same up till the 1st of August 2017. BTC went the segwit way, BT CASH decided to say exactly the as always, except, they increased the block size to 8 mb from 1 mb. So now this seems like a good idea to increase speed and lower fees, but this will get congested over time and increased usage. Looks like the Bitcore team want to leverage newer scalable layers on to of the current 1mb block size chain, but can't decide. So in summary, BT cash took the easy less innovative way for a short term gain (IMHO).
I am not sure if i get your point.
Bcash did nothing new. There are hundreds of forks allready doing bigger blocks and they are called altcoins. All good needs time for development.
I agree with your last words that BCash took the easiest way to gain ... (IMHO to gain for their own profit)
Yep, my apologies, I meant that the crytography is still the same for both up until 1 August 2017, hence security is the same, only the block size has increased, thats the only difference. In terms of security, well thats a totally new topic, becasue many people interpret it in many different ways. The blockchain algo or the crytography has never been hacked, for both, if thats whst you were getting at. So the ledger has been and looks like, till the use of Quantum computing, will be totally imutable. Now if you talk about the wallets, and the handling of the wallets and Malware for them, thats another can of worms. Git Hub is there and the source code is open to view so is a good place to get wallets from. Some wallets from the bit coin forks can be malicious, hence caution is advised if you want to claim your free tokens, hope this helps.
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When you say "to gain for their own profit" who do you mean?
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It sounds like the test not very fare.
It disturbed me that you didn't tried to pay more for your BCH transaction to make it happen faster.
Thus I hardly see any conclusions from this tests...