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Transaction costs, bitcoin is rising, it means that the price for several months drops? – Breaking News

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The transaction fee for bitcoins, to send more than doubled since the last one in half. Usually, this will be the beginning of a decline in prices, but now it seems that the shoe is on the other hand.

The transition to the vergoedingenmarkt

The transaction costs of bitcoin, with nearly a 250% increase since the third time that the bitcoin halving took place on the 11th of may. It looks like it’s still too early, but this could be the beginning of a transition to a more sustainable vergoedingenmarkt. This means that miners are less dependent on a fee for every found block, but depending on the number of transactions in a block. From a macro-perspective, however, the additional security protection of the network more heavily than the costs to the user. Well, none of us live in a macro-level.

Costs will rise, so the price is dropping?

Since the half is the average amount that will be required for bitcoin transactions to send to increase from $ 2.50 to 6.40 u.s. dollars. The average transaction cost of bitcoin each month since August, 2019, not more than the $ 2 came out.
For the last time, that is, the average cost is 6 dollars, reached in July 2019. This was the beginning of a falling bitcoin price, it would be several months in duration. In the summer and fall months, increased for the transaction costs, because a lot of traders and investors have their coins to the fairs to move in order to put them up for sale.

The opposite turns out to be true

Now the transaction costs are so high, if it is reasonable to expect that the share price now, even months at a time is going to go down. However, there is one that does not correspond to the reality. According to the Glassnode persuade investors of their bitcoins en masse on the market. Since the crash of march 12, you can see just that there are a lot of bitcoins from the exchange can be achieved, rather than to be controlled. Glassnode refer to this as the largest and longest of BTC ruilbalans downtrend in the history of bitcoin. In English, this sounds better and better.

One possible explanation for this decline is that investors have money in the stock markets hold back from the cold storage, which is a very good prospect for the long-term means.

These high transaction costs is to come for the miners, in any case, not bad at all. Due to the blokbeloningen reduced by half to these earnings still have to be compensated. It is, at least in the short term, will have an incentive to keep mining.

The more processing power and is safer

With the rapid increase in the transaction costs of bitcoin can be a disadvantage for the user, but it also means that the miners are in the network of the bitcoin safe keeping. The more fees, the more attractive it is to mine. As the processing power of all miners is rising, it is bitcoinnetwerk to be more secure.
It is interesting to note to keep an eye on whether the bitcoin network will actually be a transition and goes down, or if it’s a few days past.

About the author

Jeremiah Faber

Jeremiah Faber

Jeremiah is an explorer by heart – both in the physical and the digital realm. A traveler, Jeremiah continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Jeremiah and through his business acumen has gained financial profits as well as fame in his business niche.