Bitcoin Transaction Fees Reach Highest Level in Over Two Years
The cost of sending Bitcoin has reached its highest level in over two and a half years, with the average transaction fee now standing at $37.58, according to Bitinfocharts data. This surge in fees began in May 2021, coinciding with the rise of Ordinals, which are assets stored on Bitcoin’s blockchain, similar to non-fungible tokens (NFTs).
As more investors show interest in Ordinals, the blockspace that was previously used for image-less BTC transactions is being occupied by these assets. Miners, who confirm transactions, are taking advantage of the increased workload by charging higher fees for Bitcoin transfers.
Impact on Bitcoin Community and Previous Fee Highs
This trend has sparked a divide within the Bitcoin community. Some argue that the blockchain should prioritize its original purpose of facilitating peer-to-peer online payments rather than accommodating asset storage. In April 2021, during a previous bull run, Bitcoin fees reached an all-time high of $62.77 per transaction when the coin’s price was $57,000.
Hot Take: The Rising Cost of Bitcoin Transactions
The soaring fees for Bitcoin transactions highlight the growing demand for Ordinals and their impact on network congestion. As more assets are minted and stored on the blockchain, users are facing higher costs to send or receive BTC. This situation raises questions about the scalability and utility of Bitcoin as a medium of exchange. Finding a balance between accommodating new use cases and maintaining affordable transactions will be crucial for the future of the cryptocurrency.
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