Bitcoin fees have hit a two-year high—and they’re continuing to climb fast.
Data from Bitinfocharts shows that the current average price to make a transaction on the Bitcoin network stands at $31.14.
The last time it was that high was back in April 2021 after they touched an all-time high of nearly $63 then dropped down again.
Some even highlighted on Twitter how surging fees are hurting those using Bitcoin for everyday transactions: Marce Romero said that a $100 transaction in El Salvador cost over $20 to complete, adding that those using the network for “fkn jpegs” (referring to NFTs) should think twice—insinuating that there are more important use cases for using Bitcoin.
I’m in El Salvador 🇸🇻 right now. Just witnessed a cash withdrawal via #btc
This individual now had to pay $20 in fees for getting $100 out in a country where the avg. salary is $300-350
I want you to think about this when enabling gambling on fkn jpegs or meme coins.
This is… pic.twitter.com/RTVLqG7DNn
— Marce Romero (@MarceMR19) May 8, 2023
Why are they so high right now? If you want to make a transaction on the Bitcoin blockchain, you need to get it approved by a miner.
Miners use powerful computers (usually industrial-sized operations) to solve complex problems which in turn validate transactions. They are then rewarded in Bitcoin for their work.
If the network is busy you’ll have to pay more to get the job done—that’s the transaction fee. And it looks like a lot of people are using the Bitcoin network right now.
Some have said that the current clogged network is down to the surge in interest in Ordinals, a protocol used for minting NFT-like assets on Bitcoin.
There are options for those not wanting to pay much when sending or receiving the biggest cryptocurrency: When making a Bitcoin payment, you have the option of paying lower fees. Though by doing so, you risk waiting around for hours as miners prioritize more lucrative transactions.
Bitcoiners can even choose to pay no transaction fee—but miners may completely ignore such transactions and it will never reach its destination.
The Lightning Network is another option for lower fees: the “second-layer solution” speeds up transactions by skirting the main Bitcoin blockchain. Major businesses like Jack Dorsey-backed Spiral and MicroStrategy are trying to make it mainstream.
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Source: https://decrypt.co/139483/the-cost-of-sending-bitcoin-soars-to-two-year-high
