BTC: the unforseen tragedy

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Avatar for TaniChris
3 years ago

Money is only valuable because other people think it's valuable. Whether it's Bank of England notes and coins, shells, precious stones or matchsticks - all of which have historically been used as money - it only works when everyone trusts it.

Since January 1st, the average cost of sending transactions on the Bitcoin network has increased by 2,213%.

With an all time high as $6.64 on May 20. That’s the highest average cost of a Bitoin transaction since July 2018—almost two years ago.

Fees typically rise whenever the Bitcoin blockchain comes under heavy usage. That notion is backed up by data from Blockchain.com, which displays a heavily backlogged mempool of pending Bitcoin transactions.

Bitcoin’s blocks process 1MB worth of transactions at a time. When the network comes under heavy usage, people are forced to pay higher transaction fees for the privilege of having their transactions included in the next block.

Bitcoin users are free to set their fees to zero. Unfortunately, they run the risk of being ignored by Bitcoin’s miners, who naturally seek out higher-paying fees.

This issue is raising concerns. Below is a view point from a member of the read.cash community

Assuming BTC adoption continues and the demand for transactions increases, there will be a day when a wallet containing $100 or less will be unable to make a transaction therefore locking the $100 forever or until BTC has negative adoption and the demand to transact decreases, defeating the entire goal of BTC. Even if the only on chain transactions are made by institutions and liquid network Federation members, the fees will still be too high unless they themselves also participate in the negative adoption. So if the liquid network ends up working out in the long term, these sub $100 wallets will be locked forever. - by Zek256

Read the article for more details

One day all btc wallets containing less than $100 will have their btc locked forever

What's your take on the high transaction fees

it seems it's not just the promise of riches that keeps people believing.

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Avatar for TaniChris
3 years ago

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I really think this high transaction fees are one of the reasons bitcoin wont see the light of success in future. I read that article about the locking of wallets with $100 and below, if this should happen millions of people would remove their interest from this whole idea of block chain totally causing a backdrop for other crypto currencies not only bitcoin which is really bad.

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3 years ago