The Rising Cost of Bitcoin Block Space
The price for Bitcoin block space has reached a new all-time high, making it more expensive to move Bitcoin. This surge in cost is primarily due to the massive demand created by Ordinals transactions. On-chain data shows that transactions have reached a cost of over 350 satoshis per vByte (sat/vB), causing major congestion in the blockchain.
Record Demand for Bitcoin Blockspace
Anita Posch, the founder of Bitcoin for Fairness, highlighted the record cost on Twitter. She noted that transactions reached a cost of over 350 satoshis per vByte (sat/vB) on Thursday. This creates challenges for smaller on-chain payments as fees become unaffordable for users in countries with lower average incomes.
Benefits to Bitcoin Miners
Ordinals transactions have generated significant fees for Bitcoin miners. According to Dune Analytics, these transactions have accrued $148.4 million in fees to date. However, some Bitcoiners believe that Ordinals transactions are a form of network spam and choose to filter them out. Ethereum gas fees have also increased following the introduction of Buterin Cards NFTs.
Hot Take: The High Cost of Moving Bitcoin
The rising cost of moving Bitcoin is becoming a significant concern for users. With block space prices reaching all-time highs, transactions are becoming more expensive and slower to settle. This poses challenges for smaller on-chain payments and raises questions about the feasibility of using Bitcoin for everyday transactions. While the benefits to miners are evident with the surge in fees, it remains to be seen how this will impact the overall adoption and use of Bitcoin as a currency.
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