Average transaction fees for Bitcoin (BTC) reached $ 17,206 on Friday. According to BitInfoCharts data, it passed $ 17,086, the highest level of 2021 determined on January 12. Average wages on Friday are the highest since January 2018, when traders were furiously trying to withdraw cash before the bitcoin price fell completely.

 

 

Transaction fees cover the benefit cost of the vast computing power required to process blockchain transactions. To perform an operation, miners have to solve complex math problems. To do this, the Bitcoin network rewards miners with new BTC.

High transaction fees indicate high demand. Fees rise when the demand to process transactions exceeds the supply of miners willing to process them. Miners increase their fees to add value to their time, allowing network participants to process only their most important transactions.

Why have wages increased? The obvious reason for this is Elon Musk. Tesla CEO Elon Musk has become the highest profile advocate of Bitcoin. As Kriptokoin.com previously reported, the price of the coin increased from $ 32,000 to $ 38,000 after the Twitter bio, which it changed to “Bitcoin”. A correction was made shortly afterward and the price dropped to around $ 32,940.

 

Huge Bitcoin transactions piled up

According to data from Blockchain.com, there are currently over 71 MB of transactions to be processed on Bitcoin’s blcokchain. How much this is can be understood as follows: On January 7, there were 25 MB waiting to be processed. By January 15, this had increased by a staggering 240% to 85 MB.

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The all-time high for Bitcoin’s average transaction fee was set on December 21, 2017. At that time, the Bitcoin price was close to $ 20,000. Bitcoin’s current bull run has overshadowed this success. However, in 2017, the demand to process transactions was so high that the average transaction fee reached $ 54.90.

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