Blocktoq

    Will Bitcoin protect your savings from inflation?

    18 November 2021

    How to create nft art?

    12 November 2021

    USA – the top destination for bitcoin miners. Why China gave away the title?

    11 November 2021
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    Blocktoq
    • Crypto News
    • Explained
    • Reviews
    • After Hours
    • Market Tools
    • Igaming
    • English
      • Polish
      • Russian
    0 Shopping Cart
    Blocktoq
    Blocktoq»Crypto News»What does a drop in Bitcoin transaction fees mean?
    Crypto News

    What does a drop in Bitcoin transaction fees mean?

    KonradBy Konrad15 June 2020Updated:15 March 2021No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Сборы за транзакцию биткоин|Тарифы на сделки биткоина низкий уровень|Ethereum 2.0 и проблема масштабируемости|Майнеры и падение выручки после снижения транзакционных издержек
    Share
    Facebook Twitter LinkedIn Pinterest Email

    After a 1600% increase between April and May, BTC’s transaction fees fell back to pre-halving levels and now stand at $0.56.

    In short:

    • Transaction fees below USD 1
    • It’s still better than a bank transfer
    • Ethereum network charges higher than those of Bitcoin
    • Fall of miners

    Transaction fees below USD 1

    Average Transaction Fees returned to the pre-halving level from May, which divided the reward for the extraction of the BTC block. Currently, the fee is $0.56, an exceptionally low level.

    According to BitInfoCharts data, from May 20th to June 14th, Bitcoin (BTC) transaction fees dropped by 91% from USD 6.65 to USD 0.56. This is due to price peaks after Bitcoin halving, thanks to which fees increased by 1600% between 5 April and 20 May, exceeding $6. Fortunately, this is not even close to the highest level of transaction fees of $55, a few days after the cryptocurrency reached ATH ($20,000) in December 2017.

    Bitcoin Transaction Fees low level

    source: https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#3m

    It’s still better than a bank transfer

    Famous Bitcoin investor and analyst Mati Greenspan in May when the transaction fees were almost $4, aptly summarized on Twitter that the average cost of BTC transfer is still much lower than a bank transfer.

    Average cost to send #BTC is now up to $3.75.

    Still a lot cheaper than a bank transfer. pic.twitter.com/9EFWzeYGVq

    — Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) May 18, 2020

    This is well illustrated by the current drop in transaction fees, where, for comparison, a transfer fee using PayPal of $1,000 is now almost $30 (2.9%) and will grow with the amount of money transferred, and a transfer via Bitcoin will currently cost us less than $1, no matter if we send 0.1 or 100 BTC.

    Ethereum network charges higher than those of Bitcoin

    Daily Ethereum (ETH) network charges exceeded those of BTC on 6-7 June. Such movements usually indicate network congestion, where users will pay more for processing their transactions. Currently, Ethereum has over 105,000 unconfirmed transactions and Bitcoin as much as 1000 less. The average charge on the Ethereum network on June 11th was $4 and has dropped to $0.40 in recent days. 

    Ethereum 2.0 and scalability problem

    The Ethereum 2.0 update scheduled for July is intended to resolve the problem of scalability and close once and for all the sudden jumps in Ethereum transaction fees that sometimes exceed those of the Bitcoin network.

    Fall of miners

    After halving, the Bitcoin miners lost more than 60% of their revenues (from $19.25 million on 9 May to $7.80 million on 12 May). As a result, some of them left the network.

    Higher network transaction fees have become part of the miners’ revenues and a large number of professionals predicted that they would have to rely more and more on transaction fees. As you can see, the fees have again fallen to an extremely low level, which is a positive aspect for investors, but a devastating blow to miners as their revenues have lower. We can only imagine what will happen when miners start to leave the Bitcoin network en masse because of the long-term lack of profit.

    Miners revenue drop after transaction fees going down

    source: https://www.blockchain.com/charts/miners-revenue

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleCZ Binance утверждает, что криптовалюты нуждаются в глобальном мышлении, чтобы развить
    Next Article A Market Giant Will Use Blockchain Technology To Fight Global Warming
    Konrad

      Start with crypto today

      Leave A Reply Cancel Reply

      Search

      Will Bitcoin protect your savings from inflation?

      By Blocktoq Team18 November 20210

      Recently, a record increase in inflation has been recorded – both in Poland and in the USA. In Poland, inflation is close to 7%, in the USA it is 6.2%.

      How to create nft art?

      12 November 2021

      USA – the top destination for bitcoin miners. Why China gave away the title?

      11 November 2021

      Solana, the man(ETH)er

      3 November 2021

      Address: Blocktoq LTD, Kemp House 160 City Road, EC1V 2NX, London
      Email: [email protected]

      Facebook Twitter Instagram
      About us
      • Who we are
      • Submit press release
      • Advertise
      • Privacy Policy
      • Contact us
      • Shop
      • Cart
      Categories
      • After Hours
      • Crypto News
      • Crypto Projects
      • Explained
      • Finance
      • Igaming
      • Market Tools
      • Press Releases
      • Reviews
      Design by Blocktoq - Let's talk about Crypto! © 2022 Blocktoq All Right Reserved

      Type above and press Enter to search. Press Esc to cancel.