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TL;DR
Proper now, Bitcoin charges are the best they have been in 20 months (again when Bitcoin was valued at $69k).
That is nice for the Bitcoin miners answerable for processing BTC transactions! They are not solely getting their fastened/assured reward of 6.25 BTC (~$260k rn) for processing these teams (aka blocks) of ~2000 transactions each 10 minutes…
Full Story
The typical Bitcoin price is priced the identical method a tank of gasoline is priced:
By balancing provide and demand.
The factor with Bitcoin is – with regards to transactions, (in contrast to petroleum) it has a relentless fastened provide.
Solely ~2000 transactions might be processed each ten minutes.
So when demand will increase, provide cannot enhance to satisfy the brand new demand and soften costs.
…which suggests charges can in a short time skyrocket.
And proper now, Bitcoin charges are the best they have been in 20 months (again when Bitcoin was valued at $69k).
Which is nice for the Bitcoin miners answerable for processing BTC transactions! They are not solely getting their fastened/assured reward of 6.25 BTC (~$260k rn) for processing these teams (aka blocks) of ~2000 transactions each 10 minutes…
However they’re additionally accumulating as much as ~$184k in charges on high of that.
($440,000 USD for ten minutes of labor? That ain’t unhealthy!)
So what’s driving this new discovered transaction demand?
Is everybody rapidly sending extra Bitcoin between each other than regular?
Nope.
The primary perpetrator is Bitcoin Ordinals (aka Bitcoin NFTs).
We’ll dive in to how these bad-boys hike Bitcoin transaction charges up the wazoo, within the subsequent article.
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