Will BITCOIN Collapse At The 21 Million Limit?? 😰
Bitcoin Soars To $ 14,000, But Fees Are Not Lagging
Bitcoin fees grow along with the bitcoin rate.
The cost of operations with MTC is directly determined by the level of activity in the network.
Bitcoin fees hit their highest levels since January 2018.
The bitcoin rate soared to the highest levels since January 2018, but the size of commissions for BTC transactions also reached similar highs.
Two sides of the coin
Today, Bitcoin (BTC) bounced to its highest levels since January 2018, testing the round $ 14,000 mark and hitting a high of $ 14,028, according to CoinMarketCap..
As market participants commented, the first cryptocurrency in the world celebrated the 12th anniversary of the whitepaper published in 2008 by Satoshi Nakamoto.
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However, as it happened before, following the course of the MTC in the northern direction, commission rates for transactions with it also rushed, and this news is no longer so pleasing to the participants of the crypto market.
Bitcoin fees have also hit similar heights, hitting highs since January 2018, according to analyst portal Bitinfocharts. The day before, the average cost of Bitcoin commissions reached $ 14, and today it was $ 13.
Good old times…
These are very depressing numbers, if you remember that in February the BeInCrypto editorial staff talked about the fact that the average size of commissions for operations with bitcoin decreased significantly compared to December 2017.
While maintaining approximately the same level of demand, it began to amount not to $ 20, but only $ 0.50.
As recently as October 17, BTC transactions cost users an average of $ 1.5. This means that the indicator has grown by about 9 times in just two weeks..
It is noteworthy that it was from the beginning of October that bitcoin began its spectacular ascent. At the beginning of the month, it traded in the region of $ 10,500, and since then has risen in price by about $ 3,500.
Parallels with Ethereum
Obviously, the tangible increase in fees on the bitcoin network is the result of its congestion..
Prices rise in the face of increased user load, when the ecosystem begins to lack miners to process transactions.
It is believed that such congestion forces some users to pay more to ensure that their transactions are among the first to be processed. This becomes especially true at times of large market movements..
This is precisely the situation that has been observed in recent months on the Ethereum blockchain, overheated due to the excitement around the decentralized finance segment (DeFi). Investors relentlessly poured billions of dollars into new hype DeFi protocols. Against this background, the cost of commissions on the network was growing aggressively, setting a record at $ 14.58 on September 2.
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