Evening
So after soaring Ethereum gas fees this year, it seems bitcoin is joining the party with average transaction costs touching a new ATH, 59.88$. Last ATH was in 2017, when the average cost hit $55.17.
Apparently last week's huge hash rate droppage of 25% due to miners stopping their mining operations in Xinjiang China, is the main reason. Number of unconfirmed transaction on the Bitcoin mempool is increasing and to get a transaction through you just need to pay more...it's that simple.
Meanwhile, daily mining revenue is touched all time time; $77.84M, this week.
(Source)
But the issue is self-correcting, as higher transfer fees pushes more miners to join the network and the hash rate start recovering. Hefty transfer fee environment also incentives development and adoption of of 2nd layer solutions like Lightning network. Other chains with much lower transaction fess are also stepping up, e.g. Binance Smart Chain.
Until 2nd layer solutions and side chains becomes more adopted, it seems for now bitcoin users are gonna have to deal with heavy transaction fees. This makes bitcoin unsuitable for micro-transactions and serve as what it is being purported as "digital store of value".
Hodl...
See you on the moon!!!
