The average cost of completing a transaction had the world’s flagship crypto(Bitcoin) market skyrocket again.
Data retrieved from BitInfoCharts revealed Bitcoin’s average transaction cost has risen to $12, per the highest price level since November 5, when Bitcoin had just started its bull run.
- At last week’s trading session the average cost of sending a Bitcoin transaction was just $2.7. That marks an increase of 344% in less than a week.
- The surge in transaction fees is coming at the incredible bullish gains prevailing effect, in which Bitcoin’s price reached a new all-time high of $24,084 and rose by 30% in the past seven days.
What this means: Bitcoin fees usually go high whenever there is a huge activity on the blockchain, taking into consideration there is a specific supply of Bitcoin miners willing to process transactions, and they charge more whenever demand for processing transactions outweighs supply.
- That means that only those who are in dire need to transact the flagship crypto-asset shall pay the high prices required to send the Bitcoins between wallets.
What you should know
Bitcoin mining involves the act of solving tasks that come in the form of algorithms in affirming a transaction and fixing it within a block on the blockchain.
- BTC miners, who successfully mine a block are paid or rewarded in BTC. BTC miners also help in facilitating the security mechanism of the blockchain network by confirming transaction information or data to the Bitcoin ledger.
- This confirmation process involves solving complex mathematical problems and a lot of computing power. BTC Miners are successfully rewarded with BTC for their contribution to the ledger based on their proof-of-work.