Bitcoin fees are “skyrocketing”
The cost of completing a Bitcoin transaction has increased sharply in recent weeks. According to a report by Ars Technica, 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.
- ^ Ars Technica (arstechnica.com)
- ^ Parity proposes Ethereum hard fork to recover lost funds (mybroadband.co.za)