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Bitcoin [BTC]: Transaction fees remain minimum as transaction rates approach all-time high

Biraajmaan Tamuly

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Bitcoin [BTC]: Transaction fees remain minimum as transaction rates approach all-time high
Source: Pixabay

Bitcoin is currently passing through the longest bear market in the history of cryptocurrencies. Many experts and analysts have recently predicted that the worst is yet to come, even as Bitcoin recently received support from the CEO of Twitter, Jack Dorsey. Dorsey had branded Bitcoin as the native currency of the internet and demonstrated support in the Lightning Network ‘Torch’ experiment.

While the popularity of Bitcoin might be divided among the crypto verse, according to recent data released on the blockchain.com, transaction rates are approaching all-time highs even though transaction fees remained evidently lower in the Bitcoin Network.

Transactions rates per block | Source: Blockchain

Transactions rates per block | Source: Blockchain

Transaction fee per block | Source: Blockchain

Transaction fee per block | Source: Blockchain

Based on the data, it can be clearly seen that the last time average transactions per block approached the current trend of high levels, which is well above 2,000/block, was in the very beginning of 2018, and the transaction fees were also fairly higher. Today, only about 20 Bitcoins were paid as miners’ fees from the entire Bitcoin network, whereas over a thousand Bitcoins were rewarded to miners during 2018’s Bitcoin hype and enormous price explosion.

The fair explanation for this higher transaction rates can be explained by observing the total number of confirmed transactions per day. Even though Bitcoin has been under a long bearish market, the transactions per day have been consistently rising since June 2018.



Transactions per day | Source: Blockchain

Transactions per day | Source: Blockchain

According to a research conducted last year by blockchain analyst and social media blogger Hasu, an increase in batching of Bitcoin transactions was leading to more efficient Bitcoin blocks. Since the number of efficient blocks was up, the blocks were also getting fuller and it meant that there was less demand for mined blocks, and thus, lower fees paid to the miners, which can be observed in the chart.

This research sits consistent with the charts since if overall transactions per day are slightly lower now versus one year ago and block efficiency is roughly equal, we would expect less demand for blocks and lower fees paid to miners.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

Bitcoin

John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more

Priya

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John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
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Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on Coinbase.com, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!



4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!





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