Bitcoin News

Bitcoin fees have reached a two-year high


The average Bitcoin transaction fee reached $ 17,206 on Friday, setting a new record in 2021. The previous record was set on January 12, when the average wage was $ 17,068.

To Report The script, BitInfoCharts data, shows that Friday’s average wages were the highest since January 2018. At the time, traders sought to cash their currencies before the price of Bitcoin fell.

The transaction fee is the cost paid by the sender of the transaction in exchange for the miner confirming the transaction. When processing a transaction, miners must compete to solve complex mathematical equations. Finally, in addition to the block reward, the miner who puts the transactions in his block will also receive their commission.

High transaction fees are a sign of increased demand. Fees also increase when the demand for transaction processing exceeds the willingness of extractors (supply) to process it. In order for miners to be worth the time they spend, they raise their fees so that network participants can only process important transactions.

Why have commissions increased? One obvious reason is that Tesla CEO Ilan Musk has become the most popular bitcoin supporter. A quarter after Ilan added the Bitcoin Musk to his Twitter account, the currency rose in value from $ 32,000 to $ 38,000.

Bitcoin Network Fees
Average bitcoin network fees

Shortly afterwards, the increase was accompanied by a correction, and the price of Bitcoin reached $ 32,940 the next day.

Blockchain.com data indicates that there are currently more than 71 MB of unprocessed data. This is better understood when we know that on January 7, 25 MB of transactions were pending processing. But on January 15, that amount rose to 85 MB, a staggering 240% growth.

Wages are expected to remain high as long as buyers enter the market relying on Musk talk and sellers seek to make a profit after the comment.

The record for the average bitcoin transaction fee is for December 21, 2017, when the price of this digital currency reached nearly $ 20,000; In 2017, the demand for transaction processing was so high that the average transaction fee reached $ 54.90.

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