Bitcoin transaction fees fall to new lows
Cost of sending leading crypto falls up to 91 per cent in under four weeks
Having surged following its third halving, Bitcoin’s transaction fees fell to new lows over the weekend.
According to the digital asset statistics outlet, Bitinfocharts, the cost of sending the world’s leading cryptocurrency now averages around $0.711.
This marked a drop from mid-May when Bitcoin’s transaction cost jumped at $6.65 (€5.82, £5.22), its highest level in almost two years. At this peak, the average cost of sending transactions on the Bitcoin network had increased by over 2,000 per cent since January 1.
In the less than four weeks since May 20 however, the cost of BTC transactions has fallen by up to 91 per cent.
Increased usage and trading volume generally leads to an increase in a crypto’s transaction fee, as miners are able to demand higher sums to facilitate payments. An act of deflation at a time when the money supply around the world was actively being inflated to cope with the Covid-19 crisis, the halving which occurred in May attracted significant interest.
The onset of a global recession has accelerated interest in cryptocurrencies throughout 2020, with adoption in India massively increasing after the nation’s supreme court threw out the central bank’s ban on crypto trading.
While Bitcoin transaction fees are unlikely to break the all-time high reached in December 2017 of $55, with another 1.3 billion people better able to participate in the burgeoning emerging market, they could be set to pick up from their current lows.
By mid-morning Monday trading (UTC) Bitcoin traded down 3.1 per cent at $9,101.
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