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Bitcoin [BTC]’s transaction fees touch the lowest point in over three years

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Bitcoin [BTC]'s transaction fees touch the lowest point in over three years
Source: Unsplash

Bitcoin continues to show its resilience year after year, letting non-believers know that it is not a fad and is here to stay. The prices of BTC are holding steady above the $3,000 point and are steadily climbing up while its fundamentals keep getting stronger every day.

Bitcoin’s median transaction fees reached an all-time high of $34 during the start of the last year when total transactions reached a whopping 308,000 tx per day. However, the transactions fees have dramatically reduced since then and have reached a mere $0.025 as of January 1, 2019, when the total transactions were 234,000 tx per day.

Transaction fee is the fee one has to pay for transferring Bitcoin from one person to another. It is automatically deducted from the amount that is being sent and the fee goes to the miners, who mine and validate the transaction on the Bitcoin network.

A Twitter user Kevin Rooke tweeted the same, comparing median transaction fees of Bitcoin on January 1, 2019, and October 13, 2015. He tweeted:

Jan 1, 2019:
Median Bitcoin tx fee = $0.02
Total transactions = 234,576
Oct 13, 2015:
Median Bitcoin tx fee = $0.02
Total transactions = 134,741

Bitcoin’s transaction fees have now hit their lowest point in three years. According to the data obtained from bitcoinfees.gitlab.io, the current fees for Bitcoin transactions is $0.01 to get a confirmation within one hour.

Source: Twitter

Transaction fees usually depend on how fast one wants the transactions to be validated. Based on the same, below is a chart by Bitcoinfees.gitlab.io that shows how the transaction fees are classified.

Source: Bitcoinfees.gitlab.io

Willy Wonky, a Twitter user commented:

“this only proves btc is “cheap” if nobody uses it though. last time we saw 450k tx a day,fees went insane ..”

Bitcoin Consultants commented:

“It is more accurate to measure fees in sat/byte as opposed to USD.  USD fee rate always changes with the price.”

BitcoinVisual.com replied:

“I think they give you two different measures. Converting to USD gives you a sense of the buying power of that fee. The USD price of bitcoin is relevant, because if sat/byte stays the same, and bitcoin price rises, the opportunity cost of that fee increases.”





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Analysis

LocalBitcoins see steady trading volume in Russian Ruble following cash-trades exodus

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LocalBitcoins see steady trading volume in Russian Rouble following cash-trades exodus
Source: Unsplash

LocalBitcoins, the Finland-based peer to peer cryptocurrency exchange, announced earlier this month that trading in a country’s national fiat currency will be disallowed, leading many in the community to believe that countries not on the frontlines of the digital asset world would be hit the hardest. Three weeks on, some defiant trends have been noticed.

According to CoinDance, the weekly LocalBitcoins chart revealed that the Russian Ruble [RUB] recorded towering volumes, even after the June 1 cash-exodus announcement. With many expecting a drop in volume, other top countries have also seen the absence of an immediate plummet, with Moscow being the stand-out.

The first week of June saw a notable high of RUB 1,174 million in volume owing to the native currency, while the aftershock of the announcement dropped the same down by to RUB 1,104 million by the second week. The next two weeks saw the volume surge back to its May 2019 heights, with the week beginning on June 22 recording a volume of RUB 1,188 million in volume.

Source: CoinDance

On the basis of the above data, Russia is indeed a positive LocalBitcoins market.

The Finnish exchange has also been popular in South America, with its weekly volumes doing exceedingly well in the markets of Colombia, Venezuela, Peru, Chile, and Argentina, with Brazil, the only Latin American country left-out.

Buenos Aries saw its weekly volume from the initial weeks of June to mid-June drop from $13.71 million to $10.53 million, following the cash-removal announcement. In terms of the Colombian Peso, CoinDance stated that the number for the same was $9.98 billion towards the close of May 2018, and dropped to $7.16 billion by the first week of June. However, the same has since stabilized to stand at $9.2 billion.

LocalBitcoins began mulling the possibility of phasing out fiat currency trades following its inclusion under the supervision of Finland’s financial watchdog, the Financial Supervisory Authority [FSA] in March 2019. This inclusion was made days after Finnish legislators stated that cryptocurrency-based assets would be given legal status under the law. However, the act will officially come into force later in November 2019.

Additionally, several changes were made to the country’s Anti Money Laundering [AML] laws and Countering Financial Terrorism Act [CTF], which would require the exchange to follow the stated guidelines.

 





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