Bitcoin is the primary rock of crypto currencies and still the largest crypto currency by market capitalization. In August 2017, the Bitcoin community split as Bitcoin struggled with high transaction fees and slow transmission times. The split led to a hard fork from which Bitcoin Cash emerged.
With the increasing popularity in 2017, there were slow transaction times and high fees due to the overload of the Bitcoin network, which of course reduced the user-friendliness and broad acceptance to a certain extent. However, due to the Segregated Witness (SegWit) and the increased use of the Bitcoin Lightning Network, today’s fees are at a historic low. Since 2011, transaction fees have not been as low as today.
Segregated Witness and the Ethereum code Network
SegWit was capitalised on 24 August 2017 and in the following October the share of transactions via Ethereum code increased from seven to ten per cent. According to an article by The Next Web, the number of Ethereum code transactions now stands at 38 per cent.
Although SegWit caused a stir when it was launched, many key industry players announced their support, including Bitfinex and Coinbase. Recently, Ted Rogers, president of Xapo, a popular wallet company, tweeted that the company was integrating SegWit.
The Bitcoin Lightning Network is also developing rapidly, and we recently reported on the growth of the second-layer protocol.
The Bitcoin Fees according to onlinebetrug
In early 2018 the transaction fee was 453.57 sats/byte, but in early April the median BTC transaction fee fell to below 10 satoshis per byte before rising to nearly 40 sats/byte by the end of April. According to onlinebetrug, the median transaction fee (May 29, 2018) is 8.43 Sats/Byte.
Median figures by onlinebetrug are generally much more informative for data like fees or transaction value since the data is normally extremely (positive) skewed, hence the addition
What does it all mean?
Every crypto-enthusiast dreams of a “mass adaptation”. With high fees and slow transaction times, however, this seems unattainable and can in practice only be used economically as an investment or for large-volume purchases. If the downward trend in transaction fees continues, crypto currencies will be more accessible and functional in our everyday lives. Of course, we are currently experiencing a significant easing of the transaction situation compared to December 2017. But at the moment almost every crypto team is working on improving scalability.