TL; DR
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Right now, Bitcoin costs are the highest in 20 months (when Bitcoin was valued at $69,000).
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This is great for the Bitcoin miners responsible for processing BTC transactions! Not only do they get their fixed/guaranteed reward of 6.25 BTC (~€260,000) for processing those groups (aka blocks) of ~2000 transactions every 10 minutes…
Full story
The average Bitcoin fee is priced similarly to a tank of gasoline:
By balancing supply and demand.
The problem with Bitcoin is that when it comes to transactions, it (unlike petroleum) has a constant fixed delivery.
Only ~2000 transactions can be processed per ten minutes.
So as demand increases, supply cannot increase to meet the new demand and soften prices.
…which means costs may be incurred terribly shoots up quickly.
And right now, Bitcoin costs are the highest in 20 months (when Bitcoin was valued at $69,000).
That’s great for the Bitcoin miners responsible for processing BTC transactions! Not only do they get their fixed/guaranteed reward of 6.25 BTC (~€260,000) for processing those groups (aka blocks) of ~2000 transactions every 10 minutes…
But they also collect up to ~$184,000 in fees On top of that.
($440,000 USD for ten minutes of work? That’s not bad!)
So what drives this new found transactional demand?
Is everyone suddenly sending more Bitcoin to each other than usual?
No.
The main culprit is Bitcoin Ordinals (also known as Bitcoin NFTs).
We take a closer look at how these bad guys are driving Bitcoin transaction fees through the roof next article.
