Bitcoin Transaction Fees are still one reason people debates over, as some people argue with me that bitcoin cannot replace cash due to the high fees associated with it. Well as a financial students I have to make research about this since I have been using read.cash,I which expose me into using Bitcoin cas for transactions, i have be fascinated about it. Whenever I send $1 the recipient get the $1, unlike the bitcoin core which fees are always consistently high . Since cryptocurrency has make a way to send money across different place and border, on issue to be conisder are transaction fees, especially when sending bellow the rate of $50 and the recipient is getting much less value. A recent study show how much more Nigerian traded bitcoin, many are ignorant of the bitcoin cash, and most do complain about the transaction fee.
What are Bitcoin transaction fees?
Bitcoin transaction fees are included with any Bitcoin transaction so that it can be valided by a Bitcoin miner which then in turn gets the transaction confirmed on the blockchain. Once a transaction is confirmed on the blockchain, it is irreversible. Transaction fees are part of the incentives for miners to mine the Bitcoin blockchain. The other part of incentives for miners is the block reward for each mined block. In my due research I was able to deduced how transaction fees really work and how different they could be.
What is next block fee and median fee mean?
Bitcoin is made up of transactions which fill blocks, which then get chained together, forming an immutable blockchain. Each block processed takes about ~10 minutes. For example, to process 6 blocks takes about an hour on average. Typically, most people using Bitcoin as a currency don't want to wait many blocks for their transactions to be confirmed, so they pay next block fees to get their transaction confirmed within 10 minute block times. Median fees are just the middle range of all the fees to give users a better idea of the average amount being paid by everyone, discarding high and low fees. The median fee listed is based on the past week of transaction data. Median fees are also provided here in JSON format: export historical median fees.
Why are Bitcoin Core transaction fees much higher than Bitcoin Cash?
Bitcoin Core (BTC) fees are much higher due to a limit on block capacity which the Bitcoin Core is limited to 1MB. This means that transactions on the Bitcoin Core network during times of congestion ( very much/ large transaction taking place within a period of time) can spike up and become very expensive as people try to outbid the other to try to get their transactions confirmed. This would become and issues when institutions as began well as individuals to understand this, and even more issues as more adoption began to lean towards cryptocurrency. Bitcoin ab initio wasn't designed to function in this way, but was changed later by Core developers to change BTC into a settlement system. Bitcoin Cash (BCH) transaction fees are much less as the block space is not limited to a low capacity. Bitcoin Cash has scaled on chain allowing for a lot of extra block space for adoption and low fees while still retaining the original Bitcoin attributes, the block on the BCH is very dynamic and process more transactions with very low fees and a minimum time.
How can I support Bitcoin Cash?
Have read more about Bitcoin Cash, I feel it is so underrated and people are not getting more fact about bitcoin. Why pay more and spend more time to confirm a transaction? After all Bitcoin cash is Bitcoin, just like how Bitcoin Core is Bitcoin. Both are ideas that have brought the world a new idea of money and a decentralised state of finance , cutting across boundry whilst the exclusion of a third party. However, Bitcoin Cash aims to follow the original ideas of Bitcoin in being peer-to-peer electronic cash. In doing so, Bitcoin Cash developers have been working hard and timelessly as well to make BCH the best money in the world which it is already and more people are unaware of.
Buying more of Bitcoin Cash ; buying holding more bitcoin cash is a way that would help the bitcoin Cash to get more and more awareness, this year I have up to 1 BCH I'm hoping to have at least 10 BCH before the first quarter of 2020. Buying more bitcoin and using it as a means of exchange would help aboutore awareness.
Sensetization: Bitcoin cash is very easy , fast with a low cost of transaction fee I conduct transaction with BCH and I encourage more of my friend , and more companies would to start accepting BCH . A lot of people here(in Nigeria) don't care about Bitcoin Cash, but I can tell that a lot of people wants some thing that cost very less transaction and is very fast. I'm channeling my energy to orientate people more about BCH. Promotion, ads and campaign would help
Adoption : A lot of companies would discover a lot of hidden fact which they haven't discover recently, Bitcoin Cash would be the light soon enough for people to understand. Institution would soon began to discover the secret of bitcoin cash as 2021 would believe to be the year of more adoption of cryptocurrency.
Thanks for reading
Source and image
www.bitcoinfees.cash
www.bitinfocharts.com