Bitcoin’s transaction fee is observed skyrocketing

  • In a week or less than that, the transaction fee of Bitcoin has been observed increasing by 344%
  • The increment has recorded all-time high fees at %12 since earlier November
  • With the surge now, individuals who desire to transact Bitcoin will have to pay high charges

In a matter of a week or less than that, it is currently observed that the average transaction fee of the world’s leading crypto token has surged by 344%. Currently, the average transaction fee of the leading token is $12. However, as the average price of completing a transaction had the world’s flagship digital currency market soared again.

Bitcoin transaction fee have skyrocketed in less than a week

According to data retrieved from the BitInfoCharts, a cryptanalysis provider, it is revealed that the transaction cost has been inclined to the highest price level since last month. It is observed that the transaction fee is increasing parallel to the bull run of the cryptocurrency. Compared with last week’s trading session, we found that the fee has marked an increment of approximately 344%. As in last week’s trading session, the cost of each Bitcoin transaction was $2.7. 

What is meant by the soaring transaction cost of BTC?

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The surge in the BTC transaction fees was coming with the incredible bullish gains when the price of Bitcoin reached its new all-time high. If we consider the past events, usually the transactions’ price goes high with huge activity on the blockchain. Notably, there is a specific supply of the crypto token’s miners willing to process such transactions. However, whenever the demand for processing transactions outweighs the supply, then the miners charge more fees. Indeed, we can conclude that currently, to transact, Bitcoin will have to pay a required high price.

Is it necessary to charge fees for processing transactions?

The mining of the most famous crypto coin involves the act of solving tasks that come in the form of algorithms in declaring a transaction and fixing it on the blockchain. The miners who successfully mine a block get a reward in the form of Bitcoin. Such miners also help facilitate the security mechanism of the blockchain network by confirming the information of transactions. The confirmation process is too complex, as it consumes a lot of computation power to solve the mathematical problem. The miners contribute to the ledger based on their proof-of-work. However, by confirming such transaction information to validate the transaction, miners are needed to be rewarded with Bitcoin.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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