Bitcoin’s price surpassed the $36,000 mark on Wednesday and Thursday and is currently trading around $37,000. It seems that the Asian market is bullish on Bitcoin at the moment, which makes it interesting to see what Europe and America will achieve later today.
The increase in the price of Bitcoin also increases transaction costs on the blockchain by almost 1,000%.
The cost of Bitcoin transactions increases by 1,000 percent
Transaction fees on the Bitcoin network rose to nearly $6.84 per transaction on Wednesday evening. This represents an increase of approximately 970% from the low of $0.64 per transaction we reached in August 2023.
This increase in the costs of a Bitcoin transaction is a result of price increases, but also the growing popularity of Bitcoin Ordinals.
About 1.9 million entries have been published on the Bitcoin blockchain in the last two weeks. With these inscriptions it is possible to launch non-fungible tokens (NFTs) and other forms of tokens on Bitcoin.
Due to the great enthusiasm, Bitcoin is currently the largest blockchain for NFTs and its sales volume is currently even higher than that of Ethereum; Here’s what the CryptoSlam data shows us.
Good news for Bitcoin miners
Recovering transaction fees is good news, especially for Bitcoin miners. Currently, transaction fees represent approximately 8.5% of miners’ revenues; while the remaining 91.5% comes from the block subsidy of 6.25 Bitcoin that miners receive per block produced.
It is important for miners that transaction costs continue to rise as the next Bitcoin halving is scheduled for April 2024.
At the moment, the block subsidy is halving from 6.25 to 3.125 Bitcoin per block, making them more dependent on transaction costs and of course the price of Bitcoin.
All in all, an increase in transaction costs is a very positive development for Bitcoin, although it remains to be seen to what extent this will lead to a sustainable increase in transaction costs.
Source: BTC Direct
Source link
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
