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Bitcoin’s [BTC] average transaction fees soar to 10-month high while Bitcoin Cash [BCH] shows little change

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Bitcoin's [BTC] average transaction fees soar to 6-month high while Bitcoin Cash [BCH] shows little change
Source: Pixabay

Bitcoin and altcoins are perceived quite differently from Bitcoin and its hardforks. The debate here is more tribal, with the debate pitting purported BTC maximalists against Bitcoin Cash [BCH] proponents and others who claim to act according to Satoshi’s Vision.

However, statistics charting out average transaction fees for the king coin and its little brother, Bitcoin Cash, paint a telling tale. In fact, the average transaction fee for Bitcoin has soared to its highest point in over 10 months, while the same metric for Bitcoin Cash does not point to a significant change.

According to BitInfoCharts, the average transaction fee for Bitcoin was recently recorded at $2.86. Given that the fees mirror the price of the coin, average transaction fees began to pump in early April when Bitcoin saw its largest daily gain in almost a year. The transaction fee was under $0.50 in March and saw a massive 351 percent hike to reach $2.16.

In the ensuing weeks, as Bitcoin’s price began to stabilize, average fees dropped to under $0.70 once again. On the back of several announcements covering adoption, fundamentals changes, and even FOMO, transaction fees soared from $0.98 on 4 May by 194.48 percent, to reach the press time fee of $2.88.

Despite Bitcoin Cash being the market leader in terms of price gain earlier this week, average transactions fees just saw one short-lived spike. On 18 April, the fee for BCH transactions jumped from $0.0052 by an unforeseen 1282.69 percent to reach $0.0719 in less than 48 hours.

In addition to the above spike, another brief rise was seen on 29 April, when the average fees climbed to $0.0159 from $0.0029. At press time, the average transaction fees for Bitcoin Cash recorded by BitInfoCharts was $0.0058.



The same was confirmed by @Bitcoin, which is accused by many of being pro-Bitcoin Cash,

“BTC average transaction fees have reached a new 6-month high of $2.886
BCH average transaction fees remain stable at $0.005”

Recently, a LongHash report dated May 10, 2019 stated that Bitcoin miners earned eight times more in transactions fees, than all other cryptocurrencies listed on Messari.io’s OnChainFX ranking. The report added that these fees would be more of a “key financial incentive” for miners, especially given the BTC halving scheduled for May 2020.





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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

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JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





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