₿ Bitcoin Fees Headed Down
The biggest thing holding back bitcoin was its inflated charges in fees per block just to get things pushed and pushed quickly.
There was great speculation that bitcoin cash and other cryptos where artifically inflating the transactions making everyone pay higher in order to make their coin look better. (I honestly believe this was in fact part of the issue)
In the screenshot below we can see transaction fees are headed towards a more nominal fee of about $2.75 to be within the first 1-3 blocks and $1.70 for 6 blocks out (a hour)
While these fees are still on the high side for small transactions it does show a move in the right direction.
Early January of this year we where looking at transaction feeds of $20 +
Today I just transferred a little over $2,000 worth for $0.62 and it happened within 30 minutes!
But wait, there's more! Just wait for Coinbase to activate Segwit! Fees will be so low on chain, almost zero on the Lightning Network. Thanks for the good news!
I keep hearing good things about this Lightning Network. I hope it will be a good solution for speeding up transactions over the bitcoin blockchain.
LN is like iota on steroids. Kinda. LN nodes in theory can do billion tps between each other so more LN nodes more "billion" transactions can be done. The Ln then function basically like a more secure decentralized hot wallet. Hot wallet= transaction use only The problem will come is getting the bitcoin on the chain aka you have to top up the LN by main chain transfer to multisig wallet. But with segwit and providers just paying for the bitcoin to get on, most bitcoin transfers will be done on LN and be near free.
Thanks for your technical explanation!
Yea, I keep hearing it's slowly creeping down. Perhaps after we get lightning and more people use Segwit we'll see a much lower fee than this (maybe 0.2$-1$). This is long overdue.
Still much cheaper than paying $30 for a wire transfer and waiting 24 hours. It's all relative, but lower fees would open this up to more people. Especially if they could get them down for micro transactions.
Yep, people still have this false notion that the fees are still $15+ and the transaction times are in the hours and days ... but things are looking up for Bitcoin. People forget they have the world's best blockchain developers working for them.
Yes, fees are coming down because network usage is coming down -- it's reflexive.
If the network gets as busy as it was in December it will go right back up (minus downward pressure from SegWit adoption and eventually Lightning Network).
Cheers,
@dcj
Great news! I can remember the $15 fee! Nice article.
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Thanks for this great post 👍
You are right your blog was helpful @bitcoinflood