Bitcoin news

Halving Bitcoin, what effects on network fees

As expected, thehalving su Bitcoin has produced some "technical" effects on the network rather than the listing of the cryptocurrency.

As News BTC recalled in one of its focus today, in fact, the transaction fees on the Bitcoin network have increased by more than 1.300% since the beginning of the year, with the halving that has therefore pushed the amount necessary to execute a transaction up to 5,1 dollars on 11 May, the day of detection of that study. However, despite the huge increase in fees, many have pointed out that Bitcoin is still much faster and less expensive than traditional bank transfers and the use of some electronic payment services such as PayPal.

It does not escape, however, that the Bitcoin network has nevertheless recorded a significant increase in average transaction fees, with Bitinfocharts data showing the achievement of a new high of 11 months last week. On May 14, the average network transaction fee increased by more than 55% in a single day, reaching $ 5,1. While the price for sending a single Bitcoin transaction quickly dropped to $ 3,45 on May 16, the latest average rate was around $ 4.

However, the fact that average transaction fees hit an 11-month high doesn't seem to have deterred the cryptocurrency community from using Bitcoin. For example, Mati Greenspan, the founder of Quantum Economics and former chief analyst at eToro, pointed out that the average cost to send Bitcoin is still much cheaper than a bank transfer.

Le Bitcoin fees they will continue to remain lower than banks for most transfers, as Bitcoin costs a flat fee for any transaction size, unlike banks or services like PayPal which often take a variable percentage. For example, a $ 10.000 transfer with PayPal would cost at least $ 390 while the same transfer of value through Bitcoin will still cost $ 4.

Historically, the Bitcoin transaction fees they have increased every time the network has seen a long period of use. With more traffic to handle, transactions with the highest rate have the greatest chance of being included in the first available block. And the more senders compete to process and settle their transactions, the more willing they are to pay.

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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