Bitcoin also suffers from inflation, transactions are 38x more expensive than a year ago

Bitcoin transaction costs are skyrocketing! Since January 1, sending Bitcoin has become 38 times more expensive.

All data in this article comes from Ycharts.

The cost of Bitcoin has risen sharply

On January 1 this year, the average cost for a Bitcoin transaction was just $0.629. Today, December 29, that cost has risen to a whopping $23.89. This huge difference represents an increase of 3,692%, almost 38 times the original cost.

Ycharts measures this based on the average of the past 7 days in the graph below. The average Bitcoin transaction fee is the average cost in US dollars when a Bitcoin transaction is processed and confirmed by a miner. These fees are crucial for users and miners on the Bitcoin network.

For users of the Bitcoin network, this increase in transaction fees means that it has become more expensive to send or receive Bitcoin. This has a direct impact on the financial considerations of Bitcoin users and can affect the frequency and size of their transactions.

For miners, those who validate transactions and add them to the blockchain, this means a potentially greater reward for their services.

Do you have Bitcoin on BLOX and are you worried about it being passed on to you? Don’t worry, BLOX can be considered its own ecosystem. The speed at which coins are bought or sold is not dependent on the rest of the Bitcoin network.

Look in historical perspective

The price of Bitcoin is still tens of percent away from an all-time high, but we are still a long way from that. However, the transaction costs are extremely high. This is normal?

If we zoom out a little further, we see that the transaction costs were twice as high in 2021, when the price reached its maximum. It’s loud today, but not as crazy as it was back then.

What can now play a role are the so-called inscriptions. These are NFTs on the Bitcoin blockchain that didn’t exist yet.