Similar to using an ATM outside your network, Bitcoin transaction fees process on every swipe. If you are buying something using Bitcoin, you have to pay the miners using their high-powered computers and electricity to calculate those transactions. So it’s a good thing Bitcoin transaction fees are dropping, and there are a few reasons why.
If you’re dealing with Bitcoin regularly, you likely love the fact that transaction fees have dropped from about $4.40 to $1.80. That’s a significant decrease putting a smile on every Bitcoiner’s face. At one point, though, each transaction was up at $62.80!
One reason for the drop is the growing interest in mining transactions. With rises and falls in Bitcoin’s value, investors buy and sell. Sometimes, they even panic sell, and that leads to speculation in the cryptocurrency. But Bitcoin miners aren’t skeptical. On the contrary, they’re very hopeful, and mining operations are on the rise because of this. Reason one leads into reason two. With more Bitcoin mining operations and even solo miners getting involved, the mempool is becoming less congested. The mempool is the staging center for all pending transactions. With more people to calculate them, the faster and less difficult each transaction becomes.
An assuring sign of Bitcoin’s promise is that huge transactions are still taking place. MicroStrategy is the owner of more Bitcoin than any other corporation globally, and they have just purchased more. This morning, it has added another 7,002 BTC to its profile taking its total holdings to 121,044 BTC, which puts it at $6.8 Billion.
There have been over 18 million BTC mined at this point. That’s over a trillion in USD. Having $6.8 Billion may seem like a lot of BTC, but it’s not when compared to the entire market as a whole.
Fears of big corporations buying and holding Bitcoin can be alleviated when you realize how active BTC is. Bitcoin has now surpassed Paypal in the value that has transferred from hand to hand. Paypal has been in business since 1998 and has processed $302 Billion per quarter so far this year. Bitcoin has surpassed that as it’s currently processing $489 Billion per quarter this year. That’s a lot of BTC going back and forth despite corporations like MicroStrategy owning $6.8 Billion of it.
With Bitcoin transaction fees down, BTC will fly around the world at the speed of lightning. It is a proven fact that Bitcoin is more stable and valuable than the dollar. Furthermore, with every online payment system finding ways to make crypto a part of its business model, Bitcoin will continue to rise as the world’s most desired currency.
With Bitcoin transaction fees dropping, Byte Federal is the place for all your cryptocurrency needs!