Bitcoin Transaction Costs Soar to Highest Level Since April 2021

Summary

The average cost of moving Bitcoin on-chain has reached its highest level since April 2021, standing at over $37, according to data from BitInfoCharts. The recent wave of Bitcoin Ordinals inscriptions has led to increased transaction costs for all network users, and these higher fees are expected to persist.

Introduction

The average transaction cost for transferring Bitcoin reached approximately $37 on December 17th, as reported by BitInfoCharts. This marks the highest average cost since April 2021. The rise in transaction fees is primarily attributed to the recent wave of Bitcoin Ordinals inscriptions, impacting all users of the network.

Main Points

• Bitcoin transaction costs have surged to over $37, the highest level since April 2021.
• The current wave of Bitcoin Ordinals inscriptions has caused increased transaction costs for all network users.
• There is a significant number of unconfirmed on-chain transactions in Bitcoin’s mempool, resulting in delays and prioritization of higher fee transactions.
• Advocates of Bitcoin suggest the use of layer-2 solutions, such as the Lightning Network, to address the rising fees and accommodate widespread adoption.
• Bitcoin’s intrinsic nature as a competition-based network makes maintaining cheap fees incongruous and fails to draw value.

Conclusion

The average cost of moving Bitcoin on-chain has reached its highest level since April 2021, standing at over $37. This increase in transaction costs is attributed to the recent wave of Bitcoin Ordinals inscriptions. The rising fees have prompted discussions about the need for layer-2 solutions, including the Lightning Network, to address the issue and facilitate wider adoption. It is important to recognize that Bitcoin’s nature as a competitive network makes maintaining low fees challenging and fails to provide long-term value.