Theories about High Bitcoin Fees.
So recently I wrote a post about how the transaction fees of Bitcoin transactions are getting lower and the Mempool getting shorter by the day.
If you haven't read that post here is a link to it
So today I am going to state some theories of mine which I think was responsible for this process.
First of all about 3-4 months ago the Bitcoin transaction fees were minimum and barely reached 10cents so various exchanges and wallet administrators were more than happy to pay for your transaction. Thus we were paying Zero transaction fees.
But this situation changes as soon as the price of Bitcoin reached an All time High of 2000 USD. Exchanges issued notices stating that they are not going to bear any more transaction fees and the users have to bear it.
Although we had to bear the fees, at that time it was still manageble. The highest transaction fees was about 30000 satoshis which had a faster block time.
But gradually the fees started to increase
10000 sats-- 30000 sats-- 50000 sats-- 70000sats- and the highest I saw was about ** 130000sats** which at that time costed around a Dollar.
Still the transactions were not fast enough.
So why was this happening ???
First of all I think Bitcoin rose at an unprecedented speed to the top leading to major buy ins.
I saw an article once in which they said that some individual or group of individuals were continuously moving a high amount of Bitcoin through the blockchain making the Blockchain cloggy and slow. Thus resulting in higher transaction queue and more transaction fees.
** So the question might arise that why is the transaction fees lowering now?? **
I think it could be due to the fact that the price of Bitcoin has been in a constant state of flux after reaching almost 3000USD. People's are not transacting as much as they used to do before.
Another theory is that companies like Genesis mining, and other bitcoin businesses are moving/batching more transactions “off-chain” instead of settling as often as previously done. But Many of these theories are difficult to verify.
Here is the current Mempool status
PS: Sorry for the pic being just a screenshot.
If you like my post please follow me @arunava.
Nice post
Upvote my comment please.
meep
Upvoted and Resteemed by the xx_Votes_Plus curation trail! Want more earnings? Follow @dropahead in Streemian https://streemian.com/profile/curationtrail/trailing/396 and/or delegate some STEEM POWER to @dropahead! Keep up the good work!
@drophead I have joined your trail on Streemian
Now how do i get upvotes
Everytime you post a legit link to #25_Votes_Plus #50_Votes_Plus #100_Votes_Plus or #200_Votes_Plus you calify for upvoting. We vote till there is no more power left, about 80% of valid links get into our trail.
Ok thanks for notifying but for some reason I am muted in two of the channels can you check that out pls
Don't worry @rohitrajput it will reach the moon soon enough .
Nice post :)
Thanks @tedbelieve
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Nice post @arunava
Nice to have you in my feeds and get updates on crypto.
Upvoted
Thanks a lot @cryptokraze