Bitrefill CEO: Why the Bitcoin transaction fees will never be as high as 2017
Home News Bitrefill CEO: Why the Bitcoin transaction fees are never as high as in 2017, will be
Marcus Misiak –
With the rise in the Bitcoin price, the transaction to rise, currently again fees. While users were able to send Bitcoin transactions with a Minimum of 0.03 USD at the lower end of the bear market will be sent the most transactions, with 1 or 2 USD in fees. Some skeptics bring forth therefore again the old “stereotypes”, and Claims that Bitcoin transactions are too expensive.
But, as Sergej Kotliar, the Chairman of the Board of Bitrefill said, will be the fees is a problem never again as extreme as the high times of the last bull market. As you can see in the chart below, from Kotliar, is the growth of the Mempools, which goes hand in hand with higher fees, virtually not even in the graphic visible. In fact, the Mempool takes currently less than 10% of the size of the end of 2017/beginning of 2018, as the average transaction fee for the Bitcoin-Blockchain for a week on about $ 20 USD.
There are several arguments that speak for Kotliars statement. So many cryptocurrency exchanges have done a lot to keep the fees low, by implementing SegWit and Batch transactions. In addition, there are Sidechains/Second Layer/other solutions in the Form of Lightning, Liquid, and Altcoins (namely, Ethereum and Litecoin) to send values between the exchanges. So Kotliar comes to the conclusion:
There is no reason to believe that 2017 will return in the foreseeable future. On the contrary, as soon as the Lightning Network, or the Liquid go in a productive, disappear the last of the tips.
Kotliar reaffirms a recent Bloomberg report, notes that much of the On-Chain is due to the activities of speculative activities, as investors, probably of whales, want to send their Bitcoin on exchanges when the prices fluctuate. And so he made some suggestions on how companies can work in the cryptocurrency space to lower the fees for all.
First of all, The San Francisco-based exchange Coinbase batched’t eat their transactions, allegedly, “a significant percentage of the mempool-surface without Use”. Brian Armstrong, the Chief Executive of the platform, said at the beginning of 2018, that his Team worked actively in the topic. So far, the Batching has not been introduced but is still productive.
Secondly, and more importantly, also BitMEX tweaks to your stack of leads processing. While the transactions from Coinbase throughout the day take place, bundling the transactions of BitMEX’s in a single, massive Batch. How Kotliar stated, amounted to the “weird non-optimized” transactions of the derivatives exchange often to over four megabytes. By optimizing these transactions by “Best Practices” that could shrink the size according to Kotliar to 98% and hardly lead to an increase in the mempool-Chart.
Featured Image: Maquette.pro | Shutterstock