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Bitcoin transactions are now more expensive than ever

Bitcoin transaction fees have reached the highest level in the history of this digital currency. Decreased awareness in China In addition to the high volume of bitcoin transactions, there are factors that have increased commissions.

to the the report The average bitcoin transaction fee has reached $ 59, according to informed sources. At the height of the bitcoin market in 2017, the digital currency transaction fee could not exceed $ 50.

Bitcoin transactions are now more expensive than ever
Bitcoin transaction fee chart from 2016 until now

We are living in a time when the demand for bitcoin transactions has reached its peak and the complexity of its network has increased. Meanwhile, problems have arisen for coal mines in China, which have led to the closure of mining farms in some parts of the country. It should be noted that China has the highest awareness among the countries of the world, and such events can affect the awareness of the entire bitcoin network. Reports from mining pools indicate that bitcoin network awareness has dropped by 25 percent to 125 hexadeconds.

Thomas Heller, Senior Development Manager at Compass Mining, says:

The lack of ISIC devices, the sharp rise in the price of bitcoin, and the sudden decline in awareness are factors that have led to a slowdown in the blockchain process and increased fees.

With what happened in China, it can be said that a quarter of the world’s population is in trouble. On the other hand, the difficulty of the Bitcoin network is at its highest. The combination of these factors has slowed down the process of extracting bitcoin blocks. At present, it takes more than an hour to extract some blocks of bitcoin, and it has even taken two hours to extract one of the bitcoin blocks in recent days; Which is a rare occurrence in its kind.

The difficulty of the bitcoin network is set in our early days of May (mid-May). Hardness adjustment in the Bitcoin network is a self-correcting process that occurs every two weeks (more precisely, after each 2016 block).

Of course, the bitcoin network hardness is usually corrected up to 25%; But current data suggest that this difficulty needs to be corrected by 30 percent to compensate for the declining awareness that has occurred. This means that we will most likely have a reduction in difficulty in the next correction. Of course, if by that time, the problem of humanity is solved and these miners resume their activities, the situation will be different.

Regarding the beginning of the miners’ activity, Heller says:

We are waiting for the latest news about the start time of these miners in the coming days. If all goes according to plan, these miners will probably start working by the end of the week. Of course, miners in China’s Xinjiang region are set to relocate to Sichuan due to the onset of China’s rainy season.

Finally, F2Pool pool miners said in an interview with CoinDesk that they did not know the exact time these miners started.


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