Bitcoin Fees Go Down as Wallet Providers Embrace Segwit

post image

Bitcoin opponents often resort to blaming this cryptocurrency for its clumsiness and congestion at its blockchain which leads to high transaction fees. Especially, troubling disputes stirred up at the end of December 2017, when bitcoin median transaction soared to the all-time height of $34. However, there’s more hope for 2018 as fees have already started decreasing visibly amidst enhanced Segwit adoption.

According to bitinfocharts.com, within the last three months of 2017 bitcoin median transaction fee displayed a rise from $1.5 in October to the fantastic pick on December 23, a day after bitcoin reached its record of $20,000 per unit. Fortunately, fees started to decline right after Christmas, reaching the low of $12.5 on January 2 and demonstrating a slight increase up to $15.5 on bitcoin’s birthday January 3.

Our top trading bots

At the same time, a transaction processed in the space of the next six blocks would be subject to an average commission of $15.79, as bitcoinfees.info data shows. The fee for the subsequent three blocks would be $16.54, rising to $17.29 for the following block. Even though charges of $14-17 might seem for somebody an unaffordable burden, there still some positive progress as the fees halved within less than two weeks.

Currently, the number of operations waiting “in the queue” is less than 90,000. That’s an incredible result as just on December 30 there were more than 115,000 transactions in the mempool.

Segwit Conquering Bitcoin Wallets

It is known that high transaction fees are the consequence of bitcoin scalability problem. One of the solutions to it is the bitcoin’s upgrade protocol SegWit. Interestingly, but the drop in bitcoin fees has occurred alongside with the adoption of this technology by influential wallets.

For example, recently BTC.com and Localbitcoins.com have added it to their wallets. The first mining pool informed that now with Segwit bitcoin users will have fewer headaches with both fees and transaction waiting time. The support is now available both for desktop and mobile wallets of BTC.com platform.

Even though Segwit technology has been embraced by these two wallet providers, there’s still a long way to go. Currently, the protocol is supported by only 11% of exchanges, so it will take some time for it to make an impact on the average bitcoin fees. But there’s more hope once influential Coinbase introduces this technology as well.

Lower Fees Before 2019?

Bitcoin’s blockchain wasn’t always that overloaded. In its early days, the blocks were quite empty, so it was very cheap to conduct bitcoin transactions. Perhaps, this year the solution to this problem will finally be found, primarily, after there has been a successful live test of the Lightning Network, the most anticipated bitcoin technological trend of 2018.

Commission and transaction waiting time are still too high, so lots of bitcoin enthusiasts give preference to bitcoin as an asset than a payment unit. However, 2018 can bring to the bitcoin community off-chain solution to the scalability problem.

Charts Sources: bitinfocharts.com; bitcoinfees.info

Harvard Professor Called Cryptos «Lottery Tickets», Predicted BTC to Be $100
In the heat of the crypto-fall, when bitcoin costs 80% less than a year ago, Harvard University Professor Kenneth Rogoff said the «big daddy» is more likely...
Venezuelan Petro Available For Public Sale
After months of delay, Venezuela’s site for purchasing Petro.  #Enterate || El Petro podrá ser adquirido por personas jurídicas y naturales desde su...
French UNICEF Accepts Donations in 9 Cryptos
If you are a crypto-enthusiast who would like to help children, then this is your time. The French leg arm of the UNICEF has begun “The Hopepage” was created. Visitors...
Square Got License to Trade Cryptos in New York, Letting Bitcoin Soar
Cash App, a person-to-person payments service, can now be used by New Yorkers to trade cyber coins. The app is a small business service provided by a financial...
Latvian Gov’t Considers Recognizing Cryptos As ‘Means Of Exchange’
Latvian crypto enthusiasts may soon start enjoying cyber assets legally. However, they will also be obliged to pay taxes on them. According to local reports,...
How to Pay Taxes On Cryptos If You Live in The US?
Among newcomers in the crypto-ecosystem, it is common to believe that the most challenging thing is the purchase and vending of bitcoin or its ilks. However,...
Ethereum’s Co-Founder Speaks Bullish About Market Drop, Diminishing ‘Bubble’ Talks
Last week the market of cyber assets went through an unpleasant turmoil, seeing significant falls in comparison to the first week of March. For example,...
The Board Of Directors And The President Of Tezos Foundation Changed
Two members of the board of the Tezos Foundation, including its president, Johann Gevers, voluntarily resigned.They will be replaced by a member of the...
The Demand For Blockchain Developers Rose In 35 Times
American site Upwork, specializing in the search for freelancers, said that for a year the demand for employees associated with the blockchain industry...
Microsoft Embraces Blockchain, Plans to Implement Decentralized ID System
Last month, in Switzerland, there was proclaimed ID2020 Alliance, which is a project, based on blockchain tech trend. It has aimed to make people’s lives...
Bitcoin Goes Below $7,300 After Large Banks Ban BTC Purchases With Credit Cards
On February 5, bitcoin’s price has fallen below the margin of $8,000 – again after Friday’s decrease to $7,695. This time, the drop is formidable as it...
Nasdaq Is Looking Into Crypto Futures That Are Distinct From Rivals, CEO Confirms
Not long ago, Morgan Stanley decided to follow the lead of Goldman Sachs in clearing bitcoin-based futures. Meanwhile, more than a month ago two large...
Bitcoin Will Crash If Government Regulates It – Harvard Professors
Once the countries’ authorities weigh in – bitcoin will lose in price. Such an opinion was expressed by two Harward Economics professors Kenneth S. Rogoff,...
HitBTC Implies Adamant Fees on Bitcoin Deposits
Clients of the Europe-based cryptocurrency exchange HitBTC, which was launched back in 2014, should brace for fees. On December 22, the company announced...
Altcoin to Invest: Golem
Golem Network (GNT) is a decentralized computer network. Golem is almost like any other blockchain project that has tokens. Its value is $0,21 although...