As Bitcoin continues to grow, its transaction fees have already exceeded $ 1 billion. However, are there any advantages to having these transaction fees? How do these transaction fees play a role in the speed and security of the blockchain network?
31 October 2019, AtoZMarkets – Bitcoin reaches an epic milestone in the blockchain just one day before the 11th anniversary of the publication of the Satoshi white paper, surpassing $ 1 billion in cumulative transaction fees.
Bitcoin has reached many milestones along the way. Cryptocurrency reached $ 20,000 at the end of 2017 and would have recently exceeded Ethereum’s transaction fees. Today, the Bitcoin blockchain has reached $ 1 billion in transaction fees in a record high.
Bryan Auld, the founder of Billfodl’s portfolio for bitcoin, said that this milestone is cool just because it shows how much people appreciate value block space. And it’s something people do not hesitate to pay, which he thinks, is very important to move forward.
Bitcoin’s transaction fees have decreased annually in recent years, depending on asset scaling solutions, such as the Separate Witness and the Lightning Network. Despite the recording of $ 1 billion in transaction fees, the amount has been converted from BTC to the current value of BTC.
Since 2019, a total of 204,808,3479 BTC has been sent to miners in transaction fees. Using the current Bitcoin price, this means that the total amount is $ 1.86 billion in transaction costs.
It's official. The Bitcoin network has surpassed 1 billion USD in cumulative fee revenue. pic.twitter.com/lKzstEX3eI— Yassine Elmandjra (@yassineARK) October 30, 2019
Bitcoin transaction fees will likely increase
Over the next few years, transaction fees for the Bitcoin network will likely increase. Especially as the method of paying minors evolves. Jameson Lopp is the technical director of the Casa bitcoin management startup. He said that in the long run, the transaction fees would eventually have to replace the block. He continued that the general understanding is that people who use the network must replace the subsidy. That is why transaction fees are charged.
They still have 10 to 13 years of decent subsidies. Before it falls to quite insignificant amounts, according to Bryan Aulds. When this will happens, miners will have to begin adjusting profitability measures. That is based on the comparatively more volatile values of transaction fees rather than block subsidies.
According to AtoZMarkets’ Senior Market Analyst, Sanmi Adeagbo, ”Technically, Bitcoin price seems to have bottomed at $7,300. The surge to $10,500 should continue after the current minor dip. The current dip is corrective and could continue to 50-61.8% Fibonacci retracement levels at $8,250 and $8,500, respectively. It will be shocking to see the price drop below $7,300 at this point. If everything goes as expected, we should see BTC resume the 2019 trend and push above $12,300 and $13,900 high.”
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