Bitcoin Transaction Fees are Up. This is a GOOD thing.

Like the title says, right now on Mycelium Wallet (my personal favorite), the lowest bitcoin transaction fee is $1.37. In related matters, the price of Bitcoin is up over $4000. What are we to make of this?

Well, it might seem elementary but it's the demand, stupid. The more people buy Bitcoin, the more the price goes up. The more the price goes up, the more FOMO drives some people to buy (while the dollar-cost averaging dollar-cost averages keep up their steady throughline. They are truly the heart and spine of any successful speculative vehicle) and the price goes up more.

Interesting sidenote: given that people selling means people have to be buying too? The only way to make sense of how the price correlates with demand is to realize that when the price is going up, it means there are a lot of people selling and a few people buying (whales) and when the price is going down, there's a lot of people buying and a few people selling (whales again.)

Anyway, anyone remember August 1st? 2017? The fork that we both over and under-hyped? Creation of Bitcoin Cash? Yeah.

That kind of moved the goal posts. And didn't.

See, what we're all forgetting is that the whole point of the forking exercise was to increase block size and eliminate transaction fees - or at least minimize them. And that did happen! It just happened with BCH, not BTC. Now I'm pretty sure SegWit in all its myriad forms and formats hasn't gone down which means OG!Bitcoin still has all the problems it had on July 31st.

Including transaction fees going up drastically as soon as the price goes up.

Watch this space.