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The Bitcoin network has recently experienced a significant spike in transaction fees, with the average fee surging from $15 to $128 in the last 24 hours.
This unprecedented hike has reignited debates over the future of Bitcoin (BTC) adoption and its viability as a digital currency.
High Fees, Slow Transactions
According to the allegations, an individual wishing to move Bitcoin on the network must pay a fee of $128 to complete the transaction within 10 minutes.
Even though there is a low-priority transaction charge of $1.76, the transaction can take over three hours to be confirmed and complete.
Critics Voice Concerns
Apart from others, including economist Peter Schiff, this has caused a lot of concerns about the high transaction costs associated with the use of Bitcoin.
Schiff argues that these fees mean Bitcoin is not a valuable digital currency. Interestingly, he mentioned that using Bitcoin for day-to-day transactions is unrealistic because of its expensive storage and transaction fees.
Furthermore, Schiff identified Bitcoin as a “failed tech product,” suggesting that its defects do not permit it to become a viable substitute for more mature forms of payment. The crypto community still disputes whether Bitcoin is scalable and viable for regular transactions, and these arguments just show it.
Supporters Defend Bitcoin’s Capabilities
Many Bitcoin fans are still eager to pay the $128 price and are unaffected by the outcry. Through a decentralized network, they can transfer billions of dollars worth of Bitcoin 24/7, 365 days a year, to any location globally for a small price.
Supporters of Bitcoin, like Rich Rogers, praised the ability to transfer $1 Billion worth of the cryptocurrency anywhere in the world for just $128, calling it “amazing.”
The Lightning Network Solution
As the Lightning Network lowers expensive transaction costs, proponents of Bitcoin embrace it. Blockchain technology facilitates speedy and nearly fee-free Bitcoin transactions. It also helps resolve one of Bitcoin’s major issues: its high network traffic costs.
With the Lightning Network, Bitcoin is faster and less expensive as transactions are done off-chain. Transactions have become almost free and quick, a significant advance for Bitcoin. As a result, buying and selling with Bitcoin has become more feasible.
The Lightning Network provides evidence of Bitcoin’s improving capacity to manage high volumes of users and transactions. It indicates that Bitcoin is becoming more valuable and effective for all users.
The Ongoing Debate
The recent increase in transaction costs has rekindled the argument over whether Bitcoin can scale and will eventually be widely adopted. Supporters of Bitcoin stress the network’s capacity to manage significant transactions, while detractors claim that the high fees make the cryptocurrency less usable as a digital currency.
Because Bitcoin transactions are generally inexpensive, they present an appealing alternative to established banking institutions for many consumers. As the Bitcoin ecosystem develops, there will probably be more discussion about scalability issues and transaction costs.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
