Report: Bitcoin Fees are Plummeting with SegWit Activation!
Hi everyone! This report is on Bitcoin Fees decreasing after SegWit Actvation. Looks like SegWit is working after all.
Pre-SegWit
Before SegWit activation, Bitcoin fees were extraordinarily and abnormally high (ranging from $3 - $7 for simple 1 input/1 output transactions). The network was very clogged up, and miners were swapping around between BTC and BCH based on mining profitability.
Below is a snapshot from BitcoinFees when transaction fees were high:
The first column is the fee (in Satoshis per byte). You can assume a median transaction size of about 225-226 bytes (so 1 sat/byte transaction fee is equivalent to paying about 0.00000226 as a transaction fee). The graph portion shows, in navy blue, the total number of transactions in the last day with that fee, and the colored (orange/yellow/green) portion shows the number of unconfirmed transactions with that fee (specifically, the # of transactions in the mempool in the last 14 days with that fee). The last two columns show the estimated confirmation time in blocks, and in minutes.
We can see from the "before" shot that a fee of 221-240 could result in an up to 28-block or 7 hour wait. A fee of 60 sat/byte could result in waiting indefinitely or waiting for over a day. A fee of 300 sat/byte could get confirmation in the next five blocks or in the next hour— for the average transaction size, this is almost 0.0007 BTC of transaction fees—but these aren't even the highest fees that were necessary during that period.
Post-SegWit
After SegWit activated, for the first few days there weren't any visible changes to the fees, due to not many miners enabling Segwit software or mining blocks with higher sizes. But now, we see a huge difference. The network is doing much better with a lower amount of unconfirmed transactions.
Below is a snapshot from BitcoinFees when this post was released:
This is insane. A fee of 240 sat/byte could result in next-block confirmation, and a fee of 60 sat/byte could result in confirmation in the next eight blocks or three hours, a huge step up from before SegWit. A fee of 121 sat/byte could get confirmation in the next five blocks, and for the median transaction size, this is a fee of about 0.00027, a bit higher than a third of the pre-SegWit transaction fees.
Closer to the Moon
This huge fee drop is great news for all BTC users. Though these aren't the lowest BTC fees we've seen, it's a huge step from where we were before.
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Thanks for reading,
— @mooncryption
Low fee's and transaction speed are critical for everyday use. So glad to see the protocol moving forward.
Exactly. This is necessary for Bitcoin to scale in the future. The vision is for BTC to be used for small micropayments such as in coffee shops as well, and for a future like that to be possible, these steps are needed. :)
Transaction fees of 10 cents are confirming on the BTC network in less than 30 minutes. @originalworks
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This is amazing— my transaction with a fee of less than 50 cents got confirmed in less than five minutes. This is how Bitcoin should be.
Just sent through a transaction of 14 sat/byte with a size of over 1.5KB. Confirmed in less than 15m.
Bitcoin is back.
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Nice detail on the transactions fees.
I had never heard of Bitcoin fees, great site!
Thanks! The site is great, and it definitely helps lots of people figure out what fee to pay :)
yeah, this is in my bookmarks for sure now. These are the resources that The 'Stache loves!
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