Bitcoin Loses Its Low Fees Feature Amid Rising Network Costs
Bitcoin transaction fees rise 35x in 2023, beating Ethereum, driven by high demand and new Inscriptions trend.
Bitcoin's daily transaction fees soared by 35 times in 2023, with its fees going even higher than Ethereum in this area. Data from IntoTheBlock shows a sharp rise in Bitcoin fees due to increased blockchain activity and the popularity of Inscriptions.
Transaction fees are what users pay to Bitcoin miners to process their transfers. These fees change depending on how busy the network is. When many people use Bitcoin at once, fees go up as users compete to get their transactions processed quickly.
A chart comparing Bitcoin and Ethereum fees shows that Bitcoin fees have spiked recently. This rise is partly due to a recent surge in Bitcoin's price, attracting more users and transactions.
However, Bitcoin's fee increase isn't just due to its price rally. A new trend called Inscriptions, where data is directly added to the blockchain, has also made the network busier, pushing fees higher.
In conclusion, the popularity of Inscriptions and increased market activity has dramatically raised Bitcoin's transaction fees in 2023.
