Bitcoin fees hit a 20-month high as miner profits matched the $69,000 BTC price.
Bitcoin (BTC) on-chain transaction fees are dividing opinions as BTC transfer costs skyrocket.
As of December 17, the average transaction fee was nearly $40, according to data from statistics resource BitInfoCharts.
Commentator: High Bitcoin Fees Are Inevitable
The recent wave of Bitcoin ordinal inscriptions has resulted in increased transaction fees for all network users. But some believe this is here to stay.
According to BitInfoCharts, it currently costs just over $37 to send BTC on-chain. This is the highest average since April 2021.
Additional figures from Mempool.space show that Bitcoin’s mempool, the size of the backlog of unconfirmed on-chain transactions, is massive, resulting in transactions that only incur a $2 fee and have no on-chain priority.
As of this writing, nearly 350,000 transactions are awaiting confirmation.
A heated debate continues among Bitcoin supporters as casual on-chain spending becomes unviable for many small investors.
While many are outraged by the impact of ordinal numbers on fees, a popular Bitcoin figure argues that double-digit transaction costs are just a taste of the future. Those looking to protect themselves should adopt so-called “level 2” solutions, such as the Lightning Network, which are specifically designed for mass adoption.
“Currently, fees are artificially and temporarily high due to the JPEG clown phenomenon, but this is only a glimpse into the future. Scaling does not occur in L1.” Popular reviewer Hodlonaut wrote On December 16, in one of many posts on the topic by X (formerly Twitter).
Hodlonaut went on to argue that requiring lower fees for “level 1” transactions is “not only ignorant, it leads to an attack on Bitcoin.”
This reflects the very makeup of Bitcoin itself, which is a competition-based network that gains value over time, as Proof-of-Work intended. Keeping fees low is contradictory and, as the hard fork of the Bitcoin network specifically designed to provide a “benefit” showed, does not achieve value.
“Why is it important to onboard someone to L1 for a fee of less than $1 if you can’t afford to move the money in 5 years anyway? Just go to bcash or some other centralized dream already.” Hodlonaut AddedWe refer to one such derivative, Bitcoin Cash (BCH).
Miners enjoyed their best USD returns in two years.
Elsewhere, popular commentator Beautyon reiterated that despite the fees, Bitcoin continues to work as intended.
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“If Ordinals delivers high-chain world to everyone sooner than expected, it will act like a scythe cutting down everyone who hasn’t accepted a layer 2 solution to the network fee problem,” reads part of a recent X post. decided.
“Many users will be confused, angry and ready to give up on Bitcoin. They will have no recourse because there is no one to blame and no one to seek compensation for. After all, this is the normal state of the network. The rules are being followed and those are the rules you agreed to, Bored Apes!”
This perspective is shared by Adam Back, Bitcoin veteran and co-founder of Blockstream, a Bitcoin and blockchain technology company.
For him, the answer is likewise to extend level 2 functionality instead of relying on more than just miner fee incentives.
“You can’t stop JPEG in Bitcoin.” conclusion.
“Complaining only makes them do more work. If you try to stop them, they will do it in a worse way. High fees drive Layer 2 adoption and encourage innovation. So relax and make something.”
Data from Blockchain.com shows that miners’ revenue (the total amount of block subsidies and fees expressed in USD) has reached levels last recorded when Bitcoin hit its current all-time high of $69,000 in November 2021. It happened.
BTC/USD was trading around $42,000 as of the close of the week on December 17, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
