According to Longhash, a data journalism platform on February 23, bitcoin’s transaction fees have been on the increase since January this year. The hike was attributed to the price swing of the virtual asset which is currently trading at $3,791. However, the media pointed out that the fees are still less than what was charged during the 2017’s bull run.
First Two Months in 2019 Record High Bitcoin Fees
Based on the media outlet’s report, bitcoin transaction fees have been up in the first two months of the year. The fees are what must be paid for transactions to be processed by a miner and confirmed on the network. In the same vein, the higher the fee, the faster the transaction is processed given that it will have a better chance of outbidding others.
That being the case, reference was made to bitcoinfees.info platform which shows the daily average bitcoin fee that is paid for a transaction to be processed within 10 minutes, 30 minutes, and 1 hour. Here, it’ll take $0.46, $0.32, and $0.21, for a next block (10 mins), three blocks (30 mins), and six blocks (1 hr.) transaction respectively.
3 Blocks Fee Allows Transaction to be Confirmed Within 30 Mins
Therefore, if you can afford to pay as high as $0.32 for fees, there is the possibility of your transaction being confirmed within 10 to 30 minutes. These fees are cheaper in comparison with what was obtainable in December 2017 when the bull run occurred, and bitcoin hit its $20,000 all-time high.
During that time, one could pay as high as $37 for using six blocks which will see that their transactions are confirmed within 30 minutes to 1 hour. The same was reported of early 2018 where $20 could be charged as fees given that the transaction will also be completed within the same amount of time. The long wait time and high fees were attributed to the pressure on the bitcoin network during that time.
Comparison Between December 2018 and January 2019
More light into the nature of these transactions reveals that using one block or the next block (10 minutes), one could pay $0.06 as of December 31, 2018. However, as of February 24, $0.32 is charged. In a similar event, using six blocks (1 hour) for transactions $0.02 as at December 31, 2018, and as of today, a $0.13 is charged per transaction. Since the year began, the highest fee was on February 22, where $0.36, $0.34, and $0.23 were charged for 10 mins, 30 mins, and 1-hour transaction respectively.
Some Users are Willing to Pay Thousands of Dollars in Fees
Despite the recent increase in transaction fees, it is worthy to note that there are people who are willing to pay thousands of dollars as transaction fees. BTCNN on February 19 reported a case of a transaction of the Ethereum Blockchain. Here, about $300,000 was paid as a fee to send just $14.71.