Bitcoin fees under $1 despite crowded transactions

Key facts:
  • The number of waiting groups has decreased, but not the number of pending transactions.

  • Educating about Bitcoin usage is crucial so that users know what to do in such times.

Although bitcoin has been jammed since last Wednesday, March 11, the network’s commissions to conduct transactions have maintained an average of just under 3,300 satoshis, the equivalent of $1.

The Bitcoin mempool, this type of waiting room where transaction blocks wait to be added to the blockchain, has already been populated for two days.

Reported by CriptoNoticias Yesterday that more than 50,000 bitcoin transactions lined up, while the miners on this network were operating at full capacity. It should be noted that while the number of pending transactions increased by 16% in the past 24 hours, the number of suspended blocks decreased from 115 to less than 100.

While this whole situation is happening on the Bitcoin network, Transaction fee cost increased by only 3.3%. This has allowed paying with BTC to remain very cheap, especially when compared to the fees of some central money transfer services and other cryptocurrency networks.

Today, the average bitcoin transaction fee is between 13 satoshis per byte (Saturday/Forum) and 23 satoshis/fetts. In fact, according to a computer scientist and bitcoiner morsha transaction whose commission is equal to or greater than 14 sats / forum you will be able to receive confirmations within minutes. This means that making a payment with BTC can cost as little as $1.

Recently mined Bitcoin blocks confirm average transaction costs, despite network congestion. Source: mempool.space.

It is worth noting that the BB is the unit by which the weight of a Bitcoin transaction is measured. The commission paid for sending such a transaction is adjusted according to its weight and urgency, since the transactions with the highest commission are the first to be confirmed by miners.

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How could commissions be so low this time?

This is not the first time that the Bitcoin mempool has flooded pending transactions. The last time this happened was between June and July 2021. On that occasion, the main cause of network congestion was the significant drop in network hash rate.

Bitcoin mining power waned at that opportunity, after the Chinese government banned cryptocurrency mining in national territory. Between April and July 2021, Bitcoin’s hash rate fell by 60% and the cost Transaction fees averaged 80 SAT/Forumwhich is about 5 times what is currently being paid.

CriptoNoticias reported at the time that a block took 2 hours and 19 minutes to mine, when the average bitcoin mining should be 10 minutes per block. At the time, mempool accounted for more than 70,000 pending transactions, 40% more than what you expect today.

The question to ask after comparing the bitcoin congestion in mid-2021 to the current congestion is: What is the difference with Bitcoin today that has kept fees so low?

Firstly, One of the most obvious differences is the amount of hash. As of early July 2021, the Bitcoin mining capacity has dropped to 82 EH/s while the network difficulty is 19.93 T. By contrast, the latest difficulty adjustment raises it to 31, 2 TB and the network hash rate is 255 eh/s. While the current difficulty is just over 50% higher, today’s Bitcoin hash rate is three times stronger.

The most recent automatic Bitcoin mining difficulty adjustment occurred shortly before the network congested, although it had very little impact on this event. Source: statoshi.info.

SegWit and Bitcoin Education

One of the elements that positively affected the efficiency of Bitcoin is the adoption of SegWit. Currently, SegWit uses 82.39% Thanks to the fact that large exchange companies and bitcoin wallets have included this option within their services.

SegWit is an acronym that is translated into Spanish Watch separate. It is an update of the Bitcoin protocol that modifies the distribution of data in each block. Some of the advantages that SegWit offers to Bitcoin users are faster payment confirmation speed, as it allows more transactions to be added to the same block, and cheaper commissions.

There is another factor that has a decisive role, and it is definitely the most important of all Educate people about the use of Bitcoin. Although it is difficult to quantify or confirm that people are truly smarter when it comes to sending Bitcoin transactions, the numbers provided by the network give evidence that this is a latent possibility.

The fact that the current committees did not take the leap to heaven shows that People do not overpay for using BTC. Added to this are a number of tools added by wallets, exchanges, and websites to facilitate the calculation and configuration of commission payment in Bitcoin.

In terms of websites with tools available to Bitcoin users, CriptoNoticias has a table showing average commission costs per transaction in Bitcoin and Ethereum according to priority level. Platforms like mempool.space are also helpful for this and there are lessons on how to get the most out of it.

 

 

 

 

 

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