#Has Bitcoin transaction fees doubled this week?

 

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Transaction fees have increased with the price of bitcoin and up by 85% in the last four days. Bitcoin fees are increasing, this happens when there is activity on the bitcoin blockchain. According to the data, the price of bitcoin has almost doubled since Sunday. On Sunday, the average fee to send bitcoin transactions to the network is $ 2.7. But as of yesterday , it cost $ 5. 85% increase over four days.

Why did bitcoin transaction fees suddenly become more expensive again? Isn't the core purpose of bitcoin democratizing finance, simplifying intermediate transactions and making transactions cheaper?

It is because even when you process bitcoin transactions, you still have to pay decentralized fees. In particular, you have to pay the network fees to decentralized miners who will compete to solve the extremely complex mathematical problems required to process transactions.

Miners will spend a lot of energy to process your transactions, otherwise their operators will not be able to keep up with the huge electricity bills for the ongoing mining.

Therefore, when there is a lot of activity on the bitcoin network, miners increase their fees to prioritize those who actually want to process bitcoin transactions.

Dennis Vinokorov, a leading digital asset broker, also said: "Higher network activity leads to higher fees and network congestion. A faster increase in the number of daily transactions leads to higher average fees per transaction." "This is similar to the situation with ETH and Defy; when the cost of ETH-related transactions thrives later, gas costs will skyrocket."

Bitcoin broke from $ 20,000 this week, breaking its all-time high of around $ 19,500 in December 2018. Last night, the price reached an all-time high of US $ 23,642.

This means that many people will withdraw cash when the market reaches its peak, but it also means that more and more people want to connect with bitcoin.