The consistent increase in Bitcoin transaction fees is not news to anyone who has been dealing in the cryptocurrency. Recent findings further substantiate the observations shared by multiple organizations and individuals throughout the community.
The trend is significant to be noted and looked into because according to reports shared last month, the daily worth of the amount transacted in Bitcoin has reached a record $2 billion. That figure is increasing each day and could go well over that whopping limit since Bitcoin doesn’t seem to be going anywhere and only aims at growing further as the premier cryptocurrency of the world.
This only goes on to point out that even a slight increase in Bitcoin transaction fees mean a momentous increase in the amount spent on transactions that are performed throughout the blockchain network every single day.
Paying a higher transaction fee, almost every time
It’s easy to resonate with the feeling of frustration and at times, bafflement, that comes with knowing that even though you will be transacting the same amount as you did a while ago, you will now be charged a higher transaction fee for it.
It seems like the users of Bitcoin have been going through this experience since well over a year now. Multiple people from the community have been voicing their concerns over how the transaction fee needs to be controlled, reports suggest.
These concerns were addressed to an extent in the form of the softfork update, SegWit, which was aimed at reducing transaction speed by addressing blocksize limitation issues. It was being suggested that the reduced time it would take to process transactions could ultimately help the transaction fee itself. However, it does not seem like the update resulted in the reduction of the transaction fee, which has been enjoying its climb every few weeks.
Up it Goes
The fee has been consistently increasing at a concerning rate. It has been observed that the fee, especially on the higher end of the transaction spectrum, has increased by around 10 times from where it was 2 years ago.
It does not end for the higher end of the transactions either. The lower median fee shows a trend of increase as well and has doubled every quarter since June 2016.
Ethereum is not doing so bad on this front
As the findings suggest, Ethereum, which in some groups is considered a direct competitor for Bitcoin, has its transaction fee under control more often than not. This suggests that Bitcoin has to address this issue in the near future; otherwise, it could risk losing a major chunk of its market to Ethereum on account of maintaining its higher transaction fee.
Transaction intent may significantly decrease because of this issue
Judging by the rate that this issue is progressing at, it seems that Bitcoin could go on to have a transaction fee of $10 or higher associated with it, which goes against the initial notion of cryptocurrencies and how they were to make global payment transfers a breeze.
It’s high time for Bitcoin and its associated stakeholders to look into the issue because it has the potential of affecting the cryptocurrency industry as a whole.