Bitcoin Transaction Fees are Lower Than Back in 2016!
Contrary to most people’s belief, transaction fees for Bitcoin are extremely low right now, lower than in 2016!
To put that into perspective, we have lower fees (in satoshis per byte) than back when the price of 1 Bitcoin was at just $600. Most people reading this article probably weren’t even into cryptocurrencies at that time.
Chart from https://bitcoinfees.info
What are the reasons for this?
- Well, one big reason is the successful launch of the SegWit (Segregated Witnesses) protocol. Basically this change allowed the block size to be increased from 1 MB to 1.8 MB, allowing more transactions to fit in one block, and so reducing the fees. As of February 2018, almost 30% of all Bitcoin transactions used the SegWit protocol.
- The lightning network has launched its beta, and there is a small amount of Bitcoin being used with it. This drastically reduces fees, and once it is fully up and running we will see a massive drop in the cost to send Bitcoins.
"[The lightning network is] a game-changing innovation”
-Aurélien Menant (Founder of Gatecoin Exchange)
- Less people are moving their Bitcoins around in general. When Bitcoin was at its high, many, many people were creating Bitcoin transactions, and since blocks can only fit a certain amount of transactions, fees go up.
We are reaching the point where Bitcoin can actually be used as a currency.
When the Lightning Network becomes widely used, the dream of being able to pay for microtransactions with Bitcoin might become a reality.
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When the Lightning Network becomes widely used, the dream of being able to pay for microtransactions with Bitcoin might become a reality.
If you think your followers will enjoy this post, then resteem!
Make sure to upvote and follow if you like this kind of content!
Make sure to upvote and follow if you like this kind of content!
I am shocked to see how low fees are. However, I am also shocked to see how empty the blocks are. There is so little usage I thought I was looking at Bitcoin Cash data. In January each block was full.
Upvoted and resteemed by @blogbooster
Another reason is more batching of transaction basically making 100 transaction into one. More info one that: https://steemit.com/bitcoin/@sames/how-bitcoin-fees-will-get-cheaper-with-out-a-block-increase
Also PSA Bitcoin is innovating with new tech:
https://steemit.com/bitcoin/@sames/segwit-bech32-batching-others-will-lead-to-bitcoin-reaching-passing-ethereum-on-chain-tps-level
and
Onchain privacy: https://steemit.com/privacy/@sames/on-chain-privacy-how-bitcoin-plans-on-adding-privacy-fungibility
Off chain privacy: https://steemit.com/bitcoin/@sames/offchain-privacy-how-bitcoin-plans-on-adding-privacy-fungibility
Cool info shredz7 didn't know bitcoin fees became this low :)
I'll give you an upvote and one from childfund :)
You got a 17.02% upvote from @childfund courtesy of @sames! @childfund is a bid bot to help the steem community sponsor a child.