Categories: CryptoNews

Average Bitcoin Transaction Fee Has Exceeded $1

The Bitcoin network has been congested for quite some time now, blocks have been full and the debate has been at a stalemate. As Bitcoin’s adoptions is rising, along with increased coverage in the media about the price breaking all time highs, the amount of transactions has been on the rise. This has contributed to an increase in the average fee paid as users need to pay more and more in order to get their transactions to confirm in a reasonable amount of time.

Developers and users have been long aware of the problem that faced Bitcoin when the amount of transactions exceeded the available space in the blocks. The mining fees will increase because more transactions are competing for the miners’ hash power.

While this is beneficial to miners, users have to pay higher transactions fees. That fee has been slowly rising until now, it finally has reached the level of an old school financial institution. Checkout this chart that shows the rise of Bitcoin transaction fees over the past 2 months:

Related Post

The good news is that SegWit activation is progressing along as the current amount of nodes signaling it is hovering right around 30%. Furthermore, as the development of the Lightning network and other similar solutions progresses we may be able to fit much more transactions in the same amount of space.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

Mark Arguinbaev

I'm a 29 year old cryptocurrency entrepreneur. I was introduced to Bitcoin in 2013 and have been involved with it ever since. Fun Fact: I mined cryptocurrency using my college dorm room's free electricity.

Share
Published by
Mark Arguinbaev

Recent Posts

Bitwise Launches Its First Tokenized Fund With $259M in Assets and 4% Annual Yield

Bitwise Asset Management has just made its first move into tokenized funds, and it comes…

12 hours ago

Binance Launches US Stocks and ETFs Trading for Non-US Users With Zero Commission

Binance just made a move that blurs the line between crypto exchange and traditional brokerage…

13 hours ago

NEAR Protocol Ships Confidential Payments, Crosses $19B in Intents Volume, and Partners With Bermuda Government

NEAR Protocol has had a month that most blockchain projects would stretch across an entire…

1 day ago

Chainlink Records 7 New Integrations Across 6 Services and 4 Chains

Something is becoming increasingly clear about Chainlink, the integrations are not slowing down. The protocol…

1 day ago

Circle Freezes $12.6 Million in Zama’s Confidential USDC Contract on Ethereum

Blockchain investigator ZachXBT has flagged a major stablecoin freeze that is sending shockwaves through the…

3 days ago

Exponent Finance Launches V2 To Expand Institutional Yield Markets On Solana

From a primarily interest rate swap niche product, Exponent has developed into an onchain capital…

3 days ago