Bitcoin Fees in December 2017 were almost always above $10, sometimes reaching nearly $30. Today we are nearly at the same price and fees have dropped considerably; less than a dollar in most cases. But has Bitcoin actually scaled, or is it just a case of fewer transactions happening on the network?
Fees are only part of the story
The Bitcoin network has had a few issues with fees over the last few years. Because of Bitcoin’s limited blocksize, a large number of users trying to all send transactions at once will congest the network. Transactions that don’t get confirmed get stored in a queue called the mempool.
Miners will generally mine those transactions that pay the highest fee, so people can jump to the front of the queue by paying a sufficiently high fee. It results in a blind bidding war of sorts, where everyone is constantly paying a little bit more to have their transaction confirmed first.
To be usable for the entire world, Bitcoin will need to solve it’s scaling issues. That may be fixing existing issues present in the current scaling plan or implementing other solutions.
What do you think about Bitcoin’s current scaling strategy? Will changes need to be made, or will the developers solve many of the issues facing the network? Let us know in the comments below!
Images courtesy of Bitinfocharts, p2sh.info, Blockstream
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