Bitcoin’s Transaction Fees Average Over $400,000 in Last Month, BCH and BSV Under $400
When the bears got a stranglehold on BTC and let it collapse last April, the rebuild took a long time. Breaking the $4900 resistance barrier was difficult, but it finally happened a year later in April of this year. In the span of a week, the king of cryptocurrencies broke through both the $5000 and $5300 resistance levels and is now hovering around $5200 with a tense standoff between bulls and bears. A plateau if you will. It is keeping stable in this Crypto spring, so called because half the market is adamant that the winter is still in effect, with the other half heralding a new bull rush on the horizon.
Transaction Fees Holding Back ROI
The crypto winter that was in full swing prior to the large rallies early last month and it saw a noticeable increase in Bitcoin transaction fees. These increases in transaction fees are again threatening users' and traders' return on investment (ROI), and have had the effect of moving people's loyalty to Bitcoin Cash and Bitcoin SV. This isn't just because of lower fees mind, it's also because both the coins seem to have similar security to the prime coin.
That hasn't stopped people who are proponents of Bitcoin from giving excuses as to why the situation is the way it is. One particular Bitcoin fan highlighted the issue on twitter by saying that Bitcoin transaction fees have averaged $432 633 over a month while BCH and BSV have averaged $314 and $125 respectively.
The tweet also went on to say that it would take Bitcoin Cash 3.8 years and Bitcoin SV 9.5 years to accrue the same amount in transaction fees that Bitcoin does in one single day. His tweet gathered strength and people who were also proponents of Bitcoin chipped in with their own views on the matter.
One user who uses the Twitter handle @ceterispar1bus sai that he is more than willing to pay the transaction fees for a store of value like Bitcoin. Cryptocurrencies that meant to be used, such as Bitcoin Cash and Bitcoin SV are more a medium of exchange and thus would not have any reason t have high transaction fees.
He further pointed out that at one point even Bitcoin was unprofitable to mine, as much as Bitcoin Cash and Bitcoin SV are today. This is because there was no real-world use for Bitcoin at the time. In the future, this might also change for Bitcoin Cash and Bitcoin SV.
Bitcoin Becoming More Accepted
All that said, there is at least a good bedrock of support for raising Bitcoin's transaction fees. The original cryptocurrency is still being developed and there are innovations coming out every day. Soon, it could have infinite scalability and that would increase its use cases by a heavy margin.
That is not even taking into account how many institutions are starting to get involved int he cryptocurrency landscape simply due to Bitcoin. Major traditional institutions such as NASDAQ and the New York Stock Exchange have been trialing various products that are based on Bitcoin. Bitcoin has also been allowed to be a part of the investing strategy of certain pension funds. The demand for Bitcoin is at an all-time high and the number of derivatives that are being created around Bitcoin is growing every day.
This is simply a case of Bitcoin becoming an even bigger force in the crypto market than it was before, despite the rise in the value of a number of cryptocurrencies that have gained both users and value in the last few years.
The volatility index compared to Bitcoin shows that many coins are expanding the cryptocurrency market independently of Bitcoin and this is showing the world that the market is healthy even without its number one coin pulling as much weight as it used. That said, Bitcoin still accounts for over 50% of the cryptocurrency market which is growing at an incredible pace every single day.
The real watershed moment will be when Bitcoin drops under that mythical 50% of total crypto market cap. That is when many in the cryptocurrency landscape think the future will come at an ever quicker pace. There are many in the industry who think that day will come sooner rather than later – with some thinking it could even happen this year if trends hold up.
Bitcoins ferocious popularity, its increasingly limited supply and the rise of institutional involvement all point to transaction fees rising more and more in the future. How this will impact the currency itself remains to be seen, but for now… people are still happy to pay those fees.