Bitcoin transaction fees hit two month high

Bitcoin transaction fees have reached its highest levels in two months according to reports from Bitinfocharts. This spike consisted of an increase of over 200% in the past four days which can be attributed to the recent increase in Bitcoin’s price.

Bitcoin has enjoyed a sharp rise in the past two weeks from $10,600 to $13,000 and this has brought about increased activities on the Bitcoin network. Before, the costs of transaction fees maintained a low range and last Monday the average transaction fees ranged at around $2.

This pumped over $4 to the two month high of $6.37 recorded on Thursday. At the moment, Bitcoin transaction fees have dipped to $4 again. The spike between Monday and Thursday was the sharpest increase in fees since the bullish run of 2018.

The Bitcoin fee increase is a major part of the Bitcoin ecosystem and typically occurs when the price of Bitcoin pumps. Bitcoin recent bullish run has seen its price increase by over 20% in the space of two weeks and miners have made good money during this period.

This is because the higher the number of transactions on the Bitcoin network, the fees will increase because miners prioritize people that are willing to pay a premium fee for their Bitcoin transactions.

This is one of the major flaw of the proof-of-work protocol used by Bitcoin as it limits the number of transactions that can be confirmed in a block.

Several analysts have suggested changes to the Bitcoin network with some projects building sidechains on the Bitcoin network to ensure faster and cheaper transactions.

Despite these advances, miners are the biggest winners as high transaction fees means more rewards for them.