Cryptocurrencies

For the first time in years, Bitcoin transactions are this cheap, here’s how to take advantage of it


If you were planning on sending your Bitcoin to BLOX, now is the time. The transaction fees have not been this low for years.

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Last weekend the average price per transaction up to $38.69, this is the 7 day rolling average.

Why are Bitcoin transactions cheap?

On July 7th the Bitcoin price rose to around $58,200, while transaction fees fell. This was due to two main factors:

There was less demand for block space. Miners on the Bitcoin network compete with each other to verify transactions and add them to the next block in the blockchain.

Transaction Fees | Source: blockchain.com

The miners who process the most transactions receive the fees paid by users. When demand for block space is low, transaction fees decrease because miners have to compete less to fill their blocks.

In addition, less data was needed per transaction. The amount of data in a Bitcoin transaction can also affect the cost. Transactions with more data take up more space on the blockchain and therefore cost more to verify.

The funny thing is, there are a lot of transactions done on the Bitcoin network. You can see that in the graph of ycharts below.

Whether this is good or bad, we will leave open. It does offer a unique opportunity for Bitcoin holders to move their coins at a low cost.

Our tip: If you ever plan to sell your Bitcoin, you can do it now ship cheaply to BLOX. Then you wait until your target price is reached and you can sell.

What are transaction fees and how do they fluctuate?

Transaction fees are small fees paid to miners on the Bitcoin network to verify transactions and add them to the blockchain. These fees cover the cost of operating the powerful computers needed to secure the network.

It is important to note that transaction fees are not fixed and can fluctuate. Before sending a Bitcoin transaction, it is advisable to check the current transaction fees to get the best deal.

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