2018 off to a Good Start With Falling Bitcoin Transaction Fees
Adoption of Segwit Causes Bitcoin Fees to Fall
The costs of transacting in Bitcoin have been on the rise over the past several years. They peaked during the last quarter of 2017, reaching an average of over $30 for a single transaction.
However, this trend is changing fast as 2018 kicks off. Costs have dropped by about half. According to Bitcoin Transaction Fees, it now costs about $15 to mine a transaction within six blocks. The price goes up to about $16.50 for the next additional six blocks, and slightly above $17 for the next block. What’s more, withdrawal fees from exchange sites such as Bitfinex have dropped to about $14.
Segwit Making Things Easier
The drop of Bitcoin transaction fees has come as a result of Segwit’s popularity. For example, major Bitcoin platforms such as BTC.com and Localbitcoins.com have adopted Segwit in their wallets over the past 24 hours.
Segwit is a support system that makes it easier and faster to transact in Bitcoin. It is not the only system of its kind, but it is the most popular and most effective so far. In fact, it is so popular that it has been endorsed by many authoritative voices in the cryptocurrency market. One of the people endorsing Segwit is Nick Szabo, a pioneer of Bitcoin.
Other similar systems include Etherum’s Dapp browsers. And, although a majority of Bitcoin platforms have adopted Segwit, others such as Coinbase are giving Etherum’s Dapp browsers a try instead.
Still not in the Clear
It is still too early to tell whether Bitcoin transaction fees will fall further and stay down. This is especially true considering that Segwit is still a relatively new concept in the industry.
Currently, adoption of Segwit is at only 11%. There has been some hope in light of major platforms such as BTC.com coming on board, but it will be some time before everyone follows suit. Fortunately, Bitcoin users are taking note and pressurising their service providers to get it sorted.
However, everything is expected to eventually get better, impacting Bitcoin’s performance in the future. Tuur Demeester, one of the leading voices in the industry, recently predicted that Bitcoin would become more efficient based on Kleiber’s Law – Kleiber’s Law governs the size of the world’s largest cities and states that the largest city develops the best ecosystem in the long run, and resources are allocated more efficiently.
Currently, most Bitcoin users are looking for alternative cryptocurrencies to avoid the high transaction fees. They are especially fond of Bitcoin Cash as it has incredibly low fees, and altcoins, which can be used for mere cents.
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What do you feel about falling Bitcoin transaction fees? Do you think that they will hold? Share your thoughts with us in the comments below.