Bitcoin (B T c) On-chain transaction fees are dividing opinion as the cost of sending BTC skyrockets.
data Statistics resource BitInfoCharts puts the average transaction fee as of December 17 at around $40.
Commentator: Higher Bitcoin fees are inevitable
The latest wave of Bitcoin ordinals inscriptions has resulted in increased transaction fees For all network users – but some believe they are here to stay.
According to BitInfoCharts, sending BTC on-chain currently costs just over $37 – the highest average figure since April 2021.
additional data from mempool.space Show that Bitcoin’s mempool – the size of the unconfirmed on-chain transaction backlog – is very large, resulting in transactions having no on-chain priority even with an attached fee of $2.
At the time of writing there are approximately 350,000 transactions awaiting confirmation.
As casual on-chain spending has become unviable for many small investors, heated debate continues among Bitcoin supporters.
While many are angry at the impact of ordinals on fees, popular Bitcoin figures argue that double-digit transaction costs are merely a taste of things to come. Those who want to adapt need to turn to so-called layer-2 solutions like the Lightning Network, which are specifically designed for mass adoption.
“The fees are currently artificially and temporarily high due to JPEG clownery, but this is nothing more than a glimpse of the future. “Scaling doesn’t happen on L1,” popular commenter Hodlonaut wrote in one of several posts on this topic on X (formerly Twitter) on December 16.
Continuing, Hodlonaut argued that demanding lower fees for “Level 1” transactions “is not just ignorant, it promotes attacks on Bitcoin.”
This reflects the structure of Bitcoin as a competition-based network, gaining value over time as proof of work. Keeping fees low is counterintuitive, and as hard forks of the Bitcoin network have shown specifically intended to offer that benefit, Price does not attract,
“Why is it important for someone to join L1 with less than a $1 fee if they are not going to be able to transfer the funds in five years anyway? Go to bcash or another centralized pip dream already,” Hodlonaut coupleOne such branch, referring to Bitcoin Cash (BCH,
Miners receive best USD revenue in two years
Elsewhere, well-known commentator Bution reiterated that despite fees, Bitcoin continues to work as intended.
Part of a recent where did it go,
“Many users will be confused, upset and ready to abandon Bitcoin. Obviously, there will be no recourse for them, because there is no one to blame, no one to seek compensation from; After all this is the normal state of the network. The rules are being followed, and these are the rules you agreed to, you bored ape!”
That perspective is shared by Bitcoin veteran Adam Back, co-founder of Bitcoin and blockchain technology firm Blockstream.
For them, the answer lies in expanding layer-2 capabilities rather than relying on anything beyond miner fee incentives.
“You can’t stop JPEG on Bitcoin,” he said concluded,
“Complaining will force them to do it more. Efforts are being made to stop them and they will do it in even worse ways. Higher fees drive Layer 2 adoption and force innovation. So relax and make things.”
Data from blockchain.com shows Miners’ revenue – the sum total of block subsidies and fees in USD – reached an all-time high when Bitcoin reached its current all-time high of $69,000 in November 2021.
This article does not constitute investment advice or recommendations. Every investing and trading move involves risk, and readers should do their own research when making decisions.