Transaction Fees Are Growing Exponentially
Over the past two years, the total transaction fees on the network have increased fiftyfold. Such explosive growth is rather strange, yet it also highlights an underlying problem. With the block size remaining one MB for now, paying a higher transaction fee slowly becomes the new normal. For miners, this is somewhat good news, as they will earn slightly more money in the process. For consumers, this makes using bitcoin more expensive than it needs to be.
Albeit an increase in transaction fees shouldn’t surprise anyone, these numbers are rather worrisome. Keeping all transaction fees combined below the US$10,000 level seemed very likely for some time. In fact, things only got out of hand from 2016 onwards. As the bitcoin network grows, more transactions take place, all of which need to be included in network blocks.
Given the “limited space’ every block has, network congestion occurs more often than before. Bypassing this artificial blockage requires paying higher fees. In the end, this scenario creates an endless circle that will force users to pay more fees until a solution is found.
Solving the problem is not an easy task, though. It is evident the current situation can’t be maintained for much longer. Removing the block size altogether is one option, according to some Reddit users. Scaling bitcoin remains a critical problem that requires action sooner rather than later. These political games have gone on long enough, that much is certain.