Bitcoin Transaction Fees Spike 350% in a Month, as ETH Fees Decline – First of all; anything published on bitcoin.com is not pro Bitcoin. bitcoin.com is owned by Roger Ver who is pro Bcash (alt-coin) he just thinks it’s Bitcoin. He constantly portrays Bitcoin in a negative light as he doesn’t believe in the development path it has taken. He also owns a tonne of Bcash, so it works in his favor to be malicious against Bitcoin. Bitcoin is the clear winner of the 2, Roger wasn’t able to steal the Bitcoin brand. Bitcoin is number #1, Bcash is #5 – the market has already decided.
The leading development team in Bitcoin; Bitcoin Core, believe you simply cannot scale blockchain for a global payment system & retain all of it’s benefits. There’s a massive trade-off for decentralization & censorship resistance if all you do to scale is increase the block size (Size of data block for transactions). Roger Ver believes all Bitcoin needs is larger blocks. Yes, fees would be much cheaper, however the blockchain size will grow at an exponential rate which will require more storage/bandwidth for a typical node. Nodes will start to drop off the network as they are unable to meet the requirements – more centralized. Also if you make the blocks larger, just to get cheaper fees, you open up an attack vector where people can spam the network. Having a fee market in Bitcoin is healthy and absolutely needed. Also smaller blocks propagate better over the internet. My opinion has always been – trust the developers; some of the brightest sparks are working on Bitcoin.
In perspective, if you pay $10 for a Bitcoin transaction consider the follow:
-You generally pay a 10% fee to exchange your gold
-Fees to trade stocks are generally much higher
-Sending fiat or government money internationally always comes with ridiculous fees
-When you send any amount of Bitcoin it cannot be stopped (you would need more power than the sun to do so). You are transacting the hardest money on earth, this should come at a cost.
-Your transaction fee is given to miners; you are further incentivizing them to secure the network.
If you still don’t like the fees, this is why we have second layer solutions – Lightning Network being the most popular. The Internet has many layers & so will Bitcoin. When fees drop you should open as many lightning channels as you can or send your Bitcoin to Bech32 address (starts with ‘bc’) to save fees in the future. Even if fees never become cheap again; 1 on-chain transaction for a Lightning channel to Wallet of Satoshi for example, and you could potential make 1000 transactions for a very low cost. Or if you don’t want the cost of opening a channel you can use a custodial wallet that manages the channels for you. Downside – Not your keys, not your coins. More exchanges, wallets, merchants, services are implementing Lightning all-the-time.
If you want to take full advantage of the Lightning Network, I highly recommend setting up a full node (mynodebtc, umbrella). In my opinion, Lightning has a bright future and will eventually allow the world to easily transact Bitcoin with high though-put, privacy & low fees. They can now, just takes a bit more time, money & effort to work it out. Improvements are being made everyday – I definitely wouldn’t ignore it.
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