Bitcoin Cash generally has lower transaction fees than Bitcoin because it was designed with a larger block size, allowing more transactions to be processed in each block. When Bitcoin Cash was created in 2017 through a blockchain fork, one of its main goals was to improve scalability and reduce transaction costs for everyday payments.

Bitcoin has a relatively limited block size, which means only a certain number of transactions can fit into each block. During periods of high network activity, users compete for limited block space by offering higher fees to miners. As a result, Bitcoin transaction fees can rise significantly when the network becomes congested.

Bitcoin Cash addresses this issue by allowing larger blocks that can accommodate many more transactions. With more available block space, there is less competition among users to have their transactions included in the next block. This generally keeps transaction fees low, even when network activity increases.

Another reason for lower fees is that Bitcoin Cash typically experiences lower transaction volumes compared to Bitcoin. Since the network is usually less crowded, miners can process transactions without requiring users to pay substantial fees. In many cases, Bitcoin Cash transaction fees remain only a fraction of a cent.

These lower fees make Bitcoin Cash attractive for small purchases, microtransactions, and peer-to-peer payments. However, some supporters of Bitcoin argue that its fee market contributes to network security and long-term sustainability. As a result, the two cryptocurrencies follow different approaches to balancing scalability, decentralisation, and transaction costs. Understanding these differences helps users choose the network that best suits their needs and payment preferences.