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Bitcoin transactions fees will kill bitcoin

Bitcoin 2020/05/23 09:56 by Brian Dutch

Bitcoin transactions fees will kill bitcoin !

Did you see the average bitcoin transaction fees nowaday?
We can broadcast a transaction trought the bitcoin blockchain for 70 to 320 satoshi per byte. In average, you have to spend ~ $2 to send some bitcoin.

 

Why bitcoin transaction are so expensive at the moment?

There is only one reason : The network is overloaded. There is too much transactions for the miners, so transactions are pending... And to get confirmed first, you have to set higher fees, and then, and then...
But why there is so much transactions? What's happening?
Nothing actually. The first reason is because of the recent Bitcoin Halving happened on 11th of May 2020 at the block 630,000. So before, each miner was rewarded 12.5 BTC per block.... And from now, it's decreased to 6.25 BTC. As it could not be (so) lucrative anymore for them to mine the Bitcoin, they are going to mine another coin... So the Bitcoin mining power decrease.
Another thing it's probably because a lot of traders was waiting something on the bitcoin value.

 

On the next halvings, the fees will be too high to use bitcoin !!

The last halving will be on the year 2028. At this time, A block won't be rewarded at all by the blockchain but only by the transactions fees.
So do you think the bitcoin fees will be so high to use it like we do it today?
Who knows?! Nobody can tell exactly how it will works but it should works in the same way as it works today. Some people are telling that the bitcoin halving is really good for the network... And I think this could be good for the Bitcoin price. I think the bitcoin price in 2028 will be way more than today so the fees you pay (in bitcoin) could be the same in 2028 ... but will worth more in USD.
It's just a guess but it could also have some hard forks that will change the game, for a better world. Since now a block is rewarded a little less than 1 BTC by the fees. So from a short math, as the blockchain reward is 6.25 BTC, with a 6 times biggers fees, the reward for the miners will be the same.... With a $2 fee transaction today, it means that fees could cost $12, so 0.0013 BTC at the today's value. It still acceptable in my opinion as we know the bitcoin blockchain can not handle so much transactions per seconds we will probably never use bitcoin to buy a coffee or use it for tiny amounts.

 

Fun facts

Biggest fees?
We can still see crazy fees (probably a mistake) in transactions sometime. The biggest I've found is this one : 
291 BTC Transaction fee : Yes, that's real. 291 whole BTC fees to send 0.0001 BTC.

Biggest transaction?
Another crazy transaction is this one : 
$1 billion sent for $0.68 : This is 161501 BTC sent for a tiny fee of 0.0001 BTC.

 

Set your bitcoin client correctly to avoid so much transaction fees, if the blockchain is overloaded, the fees could be really high no mather what amount you will send ! Long life the Bitcoin ! heart

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