goozerin on Nostr: š«° Bitcoin Fees at Historic Lows š https://m.primal.net/JheP.webp Currently, BTC ...
š«° Bitcoin Fees at Historic Lows š
Currently, BTC transaction fees are as low as they haven't been in a long time. Why Bitcoin miners are suffering ā but how you can benefit. Following the fourth Bitcoin halving in April, many users complained about a fee explosion. At its peak, transaction fees averaged $128, prohibitively high for many Bitcoiners. Thanks to this record high, miners' cash registers were ringing, as the Bitcoin halving block at block height 840,000 included 37.7 BTC (then $2.4 million) in fees. With the high fees, Bitcoin miners were initially barely affected by the reduction in block subsidy from 6.25 BTC to 3.125 BTC.
Times have changed š. Miners finance themselves through the block reward, which includes the transaction fees along with the block subsidy halved in April. As such, they are currently suffering doubly, since the latest data from mempool.space shows: A medium-priority transaction costs only 6 sat/vB or $0.54 as of editorial deadline. Accordingly, Bitcoin miners often earned less than $30 million per day in July, about half compared to March and April. Bitcoin savers can now benefit from the low fees šø.
One's misfortune is another's fortune. While mining companies are in an intensified competition and had to sell large parts of their Bitcoin reserves recently, users can now again carry out cheap on-chain transactions. This might currently be a good opportunity for investors who want to transfer their coins stored on crypto exchanges or hot wallets to a cold wallet.
Bitcoin transaction fees are structured differently than, for example, credit card payment fees. A higher transferred BTC amount does not necessarily cost more. Instead, Bitcoin fees are determined by supply and demand in a free market. Rule of thumb: The more transactions waiting in the mempool and the more data being sent, the higher the fee. Therefore, advanced Bitcoiners might use the current situation for UTXO consolidation, thereby avoiding high future fee payments. š
#bitcoin #mining #fees #crypto
Currently, BTC transaction fees are as low as they haven't been in a long time. Why Bitcoin miners are suffering ā but how you can benefit. Following the fourth Bitcoin halving in April, many users complained about a fee explosion. At its peak, transaction fees averaged $128, prohibitively high for many Bitcoiners. Thanks to this record high, miners' cash registers were ringing, as the Bitcoin halving block at block height 840,000 included 37.7 BTC (then $2.4 million) in fees. With the high fees, Bitcoin miners were initially barely affected by the reduction in block subsidy from 6.25 BTC to 3.125 BTC.
Times have changed š. Miners finance themselves through the block reward, which includes the transaction fees along with the block subsidy halved in April. As such, they are currently suffering doubly, since the latest data from mempool.space shows: A medium-priority transaction costs only 6 sat/vB or $0.54 as of editorial deadline. Accordingly, Bitcoin miners often earned less than $30 million per day in July, about half compared to March and April. Bitcoin savers can now benefit from the low fees šø.
One's misfortune is another's fortune. While mining companies are in an intensified competition and had to sell large parts of their Bitcoin reserves recently, users can now again carry out cheap on-chain transactions. This might currently be a good opportunity for investors who want to transfer their coins stored on crypto exchanges or hot wallets to a cold wallet.
Bitcoin transaction fees are structured differently than, for example, credit card payment fees. A higher transferred BTC amount does not necessarily cost more. Instead, Bitcoin fees are determined by supply and demand in a free market. Rule of thumb: The more transactions waiting in the mempool and the more data being sent, the higher the fee. Therefore, advanced Bitcoiners might use the current situation for UTXO consolidation, thereby avoiding high future fee payments. š
#bitcoin #mining #fees #crypto