The cumulative bitcoin transaction fee is worth billions of dollars

jane mario

New Member
Oct 27, 2019
Bitcoin has come a long way but it is not short. There have been many events, notable milestones of Bitcoin taking place during this time. Each event, such a milestone marks a new development of Bitcoin, marking a strong development announcement of this still-disregarded cryptocurrency. On October 30, 2019, Bitcoin continued to achieve a new achievement that shows the advancement of technology and users on its network.

Cumulative transaction fees on the Bitcoin network reach the billion dollar mark

The total cumulative transaction costs (from 2009 to present) of the Bitcoin network for the first time reached a value of nine zeroes. However, this is only the cumulative value calculated based on Bitcoin price from time to time. According to data provided by CoinMetric, all over 200,000 BTC was paid in terms of transaction fees. At the current Bitcoin price, this number is equivalent to $ 1.86 billion.
“This is a really great milestone for Bitcoin because it shows how people value Bitcoin ... And sometimes people won't notice this, but I think this is really a step. advancing of Bitcoin. ”- by Bryan Aulds, Founder Billfodl.

Looking at the chart, we can see that 2017 was a year of strong growth for Bitcoin in particular and the cryptocurrency market in general. The total value of accumulated transaction costs quickly reached US $ 800 million, in less than a year. However, after that time, the number also increased slowly. This is due to network expansion solutions such as “Segregated Witness” and “Lightning Network”. These solutions have helped to reduce transaction costs and expand the network significantly.

The strong development of Bitcoin

It is no coincidence that the $ 1 billion figure represents the strong development of Bitcoin. This is a really long and arduous journey. To understand it, we have to look at a whole process. At a time when Bitcoin was most concerned in 2017, the Bitcoin network was congested resulting in extremely high transaction fees, sometimes reaching tens of dollars. At that time, Bitcoin needed a solution to remedy this.

Over time, developers have also found an effective solution for Bitcoin. These are "Segregated Witness" and "Lightning Network". With SegWit, the Bitcoin network will minimize the block size limit that reduces transaction speed. SegWit is also a prerequisite for building the Lightning Network, a network that enforces off-chain transactions, minimizing the storage burden of the Bitcoin system.
Looking at the chart above we can see the effect that SegWit and the Lightning Network bring. Cumulative transaction costs tend to go sideways from early 2018 to mid-2019. This is the result of technological innovation.

By mid-2019, cumulative transaction costs are on the rise. This shows that the network is having more users. System improvements have made the network more efficient and attracted more users. This is not a day-to-day sentence. Bitcoin has been actively changing, responding to users to achieve today's memorable milestones. More and more locations are accepting payments with Bitcoin and cryptocurrencies.