Categories

Bitcoin fees are “skyrocketing”

The cost of completing a Bitcoin transaction has increased sharply in recent weeks. According to a report by Ars Technica[1], the average cost of a Bitcoin transaction was £6 a week ago. Transactions fees then averaged around the £26 mark over the weekend, before dropping to £20 on Sunday evening.

The reason for the increase is linked to Bitcoin’s network block size, which now averages under 2,500 transactions per block – which equates to roughly four transaction per second. “Bitcoin has a transaction fee system to handle situations where demand for the network exceeds its capacity. Whenever someone submits a transaction to the network, they have the option to include a transaction fee that goes to whichever miner includes that transaction in a block,” said Ars Technica.

If there are too many transactions to fit into a block, miners choose the transactions with the highest fees first.

The higher your transaction fee, the more likely your transaction is to be processed – which has driven up prices.

Now read: Parity proposes Ethereum hard fork to recover lost funds[2]

References

  1. ^ Ars Technica (arstechnica.com)
  2. ^ Parity proposes Ethereum hard fork to recover lost funds (mybroadband.co.za)

Leave a Reply

Your email address will not be published. Required fields are marked *