How do BTC and Bitcoin Cash compare as currencies?

In comparing Bitcoin (BTC) and Bitcoin Cash (BCH) as currencies, they must be compared in the context of several key properties of money.

Fungibility, the property that each unit of the currency is interchangeable and identical, poses a challenge for BTC due to traceability concerns. The transparency of BTC's blockchain, along with the lack of affordable privacy options, may impact fungibility, especially when certain transactions face discouragement or penalties. Bitcoin Cash, on the other hand, distinguishes itself by maintaining fungibility even for "tainted" UTXOs, thanks to extreme cost-effectiveness and privacy-enhancing solutions like CashFusion.

Durability, in terms of the resilience of the underlying technology and resistance to vulnerabilities, is a shared strength between BTC and Bitcoin Cash. Both networks have demonstrated durability through confirmed transactions that are permanent and networks operating without downtime. However, the long-term durability of both remains uncertain, with BTC facing challenges due to a somewhat stagnant protocol, while Bitcoin Cash shows a commitment to ongoing adaptation and evolution.

Portability is a significant point of divergence. BTC faces challenges with high transaction fees and the adoption of Replace-by-Fee (RBF), introducing additional friction and impacting its cost-effectiveness and the finality of transactions. Bitcoin Cash excels in portability with sub-cent fees and larger blocks, ensuring prompt inclusion of transactions in blocks and enhancing the reliability of unconfirmed transactions.

Recognizability is a shared strength, with both BTC and Bitcoin Cash providing transparency through their blockchain, enabling meticulous accounting for each unit.

Stability of the value of each coin proves a challenge, with BTC and Bitcoin Cash grappling with high volatility that questions their role as stable currencies.

Learn more in our deep dive into the differences between BTC and Bitcoin Cash.