TL;DR
Proper now, Bitcoin charges are the very best they have been in 20 months (again when Bitcoin was valued at $69k).
That is nice for the Bitcoin miners chargeable for processing BTC transactions! They are not solely getting their fastened/assured reward of 6.25 BTC (~$260k rn) for processing these teams (aka blocks) of ~2000 transactions each 10 minutes…
Full Story
The common Bitcoin charge is priced the identical approach a tank of fuel is priced:
By balancing provide and demand.
The factor with Bitcoin is – in terms of transactions, (not like petroleum) it has a relentless fastened provide.
Solely ~2000 transactions may be processed each ten minutes.
So when demand will increase, provide cannot enhance to satisfy the brand new demand and soften costs.
…which suggests charges can in a short time skyrocket.
And proper now, Bitcoin charges are the very best they have been in 20 months (again when Bitcoin was valued at $69k).
Which is nice for the Bitcoin miners chargeable for processing BTC transactions! They are not solely getting their fastened/assured reward of 6.25 BTC (~$260k rn) for processing these teams (aka blocks) of ~2000 transactions each 10 minutes…
However they’re additionally amassing as much as ~$184k in charges on high of that.
($440,000 USD for ten minutes of labor? That ain’t dangerous!)
So what’s driving this new discovered transaction demand?
Is everybody impulsively sending extra Bitcoin between each other than regular?
Nope.
The primary offender is Bitcoin Ordinals (aka Bitcoin NFTs).
We’ll dive in to how these bad-boys hike Bitcoin transaction charges up the wazoo, within the subsequent article.
