Typical Bitcoin transaction fee rises to 108 SAT/byte during current bull run
Bitcoin crossing $10,500 would have made the community very happy but with the rise of price in Bitcoin transaction fee has risen as well. According to the popular Bitcoin fee tracking website, Bitcoinfees.com, the current recommended priority fee is 90 SAT/byte.
To maintain decentralization, every transaction in Bitcoin has to be first mined by miners. The process of mining involves computers to solve an algorithmic puzzle, and for every puzzle solved they are rewarded in Bitcoins. To solve the puzzle Bitcoin miners use their computational resources, and to compensate the miners the Bitcoin transactions fee is paid to them.
In the previous bear market, Bitcoin’s typical transaction fee was 25 SAT/byte and priority was 72 SAT/byte. During this bull run, Bitcoin transaction fee has risen from 25 SAT/byte to 108 SAT/byte but the recommended transaction fee is above 170 SAT/byte. A general rule of thumb is input double the transaction fee shown on Bitcoin fee chart.
Assuming that to send $100 with a weight of the Bitcoin transaction is 223 byte. With the priority transaction fee of 170 SAT/byte, the fee would come 38,760 SATs or $5 with the current price of Bitcoin.
The price increase in transaction fee is similar to the Bitcoin transaction fee increase in 2017 which made Bitcoin transaction fee as expensive as $35 per transaction.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
Did you like the news you just read? Please leave a feedback to help us serve you better