Greedy Bitcoin Traders Drive Fees up 200%

For all the fanfare, regular Bitcoin wallet users vastly outnumber Lightning’s users . Therefore, miners are cleaning up in terms of fees right now. According to a site that tracks Lightning Network data, the average “channel” size is just $137 and change at press time. There are close to 39,000 channels, and the network’s total capacity is under $5.5 million.

Meanwhile, between blocks 570,170 and 570,179, just over 26,000 transactions were processed by Bitcoin miners. A total of roughly 153,400 BTC ($765,400) were transacted over this period (less than 2 hours), not including 125 new BTC created or over 15 BTC in fees collected by miners. The current “feerate,” according to Chain.so, is about $1.15 or 0.00022991 BTC per 1000 bytes (just under a kilobyte). Properly formed BTC transactions can be as small as 0.2KB if they have only one input.

Transactions like this one are minimal, but due to the value transacted, whoever sent it decided to pay a much higher-than-standard fee to ensure inclusion. They spent a total of around $40 to post close to $1800 – the transaction size was 225 bytes. This fee is about $12 less than it would have cost to send the same amount via Paypal, according to Salecalc.com.

Reference: https://www.ccn.com/greedy-bitcoin-traders-drive-fees-up-200-heres-what-you-can-do

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Author: Neo Anderson

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