Bitcoin Fees and Unconfirmed Transactions – Complete Beginner’s Guide
BTC transaction fees increased by more than 2,000% in 2020
Bitcoin transaction fees up 2,213% since January 1.
It is noteworthy that the growth of commissions continued after the halving.
Meanwhile, the number of frozen BTC transactions exceeded 2-year highs.
Since the beginning of this year, the growth rate of fees for transactions with bitcoin has been over 2,000%. Meanwhile, the number of unconfirmed transactions reached the highest levels since January 2018.
Bitcoin transfers are getting more expensive
An interesting trend continues to emerge in the bitcoin network (BTC) this year. Average commissions for transactions with this cryptocurrency have grown by an impressive 2,213% since January 1, 2020.
According to Bitinfocharts, as of May 20, this figure was $ 6.64, which is the highest average since July 2018. For comparison, at the beginning of this year, the average commission was only $ 0.28. Thus, the indicator soared by 2,213%.
Earlier, the BeInCrypto editorial staff repeatedly talked about how cheap transfers on the bitcoin network are compared to traditional banking systems, and the introduction of SegWit technology helped to reduce the average commission for BTC transactions..
However, this year the situation began to change and the commissions began to crawl upward. The participants in the cryptoindustry tried to explain this by the general explosive growth of activity in the BTC network and the increased interest in bitcoin in anticipation of the upcoming May halving..
Halving passed, commissions remained
However, halving Bitcoin halving cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More took place on May 12, and the trend did not reverse. Moreover, after this event, the average fee for transactions with bitcoin increased by another 144%..
Some consider this to be a payback for halving. They believe that this was the result of a reduction in the reward for each new block mined in the BTC network, and now miners are trying to compensate their costs in other ways..
However, it is possible that the growth of commissions is closely related to the growth of client load on the entire Bitcoin blockchain. This can be confirmed by the data of the Blockchain.com resource, demonstrating a significant increase in the number of BTC transactions that are stuck in the mempool and awaiting confirmation..
As of May 20, this indicator of unconfirmed transactions was 94 million, which was the highest since January 2018, when the cryptocurrency was still in the phase of its bullish rally..
Accordingly, such a high load on the network forces users to pay more to ensure that their transactions are among the first to be processed. It is clear that miners will give preference to those who call a higher price, and in general this leads to an increase in the average commission. Zero fees, which were practiced at the dawn of bitcoin, now seem to be irrevocably a thing of the past..
Do you see the rise in Bitcoin transaction fees as a healthy sign of growing interest in Bitcoin and an increase in the overall user load on the BTC network? Share your opinion in the comments and join the discussion in our Telegram channel!
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