Bitcoin Fees

Bitcoin Fees Reach 6 Month Low After SegWit Wider Adoption

Bitcoin is a very resilient cryptocurrency, if not the most. It is dubbed, the king of cryptocurrencies, and it deserves such a name. Bitcoin transactions dipped below those of Bitcoin Cash, making the currency born after the hard fork useless.

Bitcoin Fees Reduced

Since more users started to use the Bitcoin network, fees and transaction times increased. Small transactions did have very high fees, making difficult to transact small amounts of money using Bitcoin.

The media was covering how different enterprises and businesses stopped accepting bitcoin due to the high fees. But now, and thanks to different situations, Bitcoin transactions are cheaper even than the Bitcoin Cash ones.

Bitcoin has reduced its fees 97% from its peak, when each transaction was $34 dollars. At the moment of writing this article, the fees reach $0.79 cents.

In August 2017, Bitcoin Cash forked from the original Bitcoin network with the intention to increase block size to 8mb, helping bitcoin to scale. But the Bitcoin community did not embrace this on-chain solution but was supporting the development of SegWit and the Lightning Network.

Two important cryptocurrency platforms, Bitfinex and Coinbase have fully implemented Segregated Witness. As reported by UseTheBitcoin, these two crypto platforms will help the network to scale and wait for the lightning network implementation.

Coinbase wrote:

“Our engineering team has finished testing of SegWit for Bitcoin on Coinbase. We will be starting a phased launch to customers over the next few days and are targeting a 100% launch to all customers by mid next week.”

The Lightning Network as a scaling solution is also growing. In addition to it, the development is gathering support form different important enterprises.  Microsoft has publicly released a blog post in which it explains that on-chain modifications degrade the decentralized state of the network and would not b able to handle world-scale transactions.

“To overcome these technical barriers, we are collaborating on decentralized Layer 2 protocols that run atop these public blockchains to achieve global scale, while preserving the attributes of a world class DID system,” reads the blog post.