Why are bitcoin (BTC) transactions so cheap now?

Discussion in 'General Bitcoin Gambling Discussion' started by 2damoon, Feb 19, 2018.

  1. 2damoon

    2damoon Member

    Back in December of last year, even relatively small deposits to poker rooms and bookies were costing me over $20 dollars each. In the past week, I've moved in excess of $10,000 from one hardware wallet to another and it cost me less than $1. What the hell is going on? Is there less congestion now because bitcoin is less popular now?
     
  2. Leif Staff

    Leif Staff New Member

    I think it is because of the bitcoin market crashing down multiple times that less people transact
     
    Last edited by a moderator: Feb 21, 2018
  3. Toast

    Toast Member

    Last december there was a huge amount of interest in cryptocurrency and there was a real fear of missing out (fomo) so every Tom, Dick and Harry was trying to buy bitcoin. Since the bitcoin network can only handle about 10 transactions a second, that was bound to cause a backlog. Other possible reasons include...

    1. Miners were sending a lot of spam transactions to drive up transaction costs.
    2. Exchanges are batching transactions now, so groups of transactions are sent as one transaction.
    3. Blocks have gotten bigger after SegWit so there is more space on the blockchain.
     
  4. Humble Servant

    Humble Servant Active Member Staff Member

    It's unlikely that transactions will get as expensive as they were at the end of 2017 again for a long time because of the Lightning Network. If transaction costs go over a dollar, people will simply start using Lightning for low value transactions. If you want to by a car with BTC, you will do it on-chain but paying bills can be done on Lightning for fractions of a penny.
     
  5. SuckIt

    SuckIt Member

    It looks like we are about to go into the next bull run so transactions will likely get much more expensive in the next year or two. Once way to reduce the amount you pay on fees is to consolidate your UTXO set. If your wallet is made up of small deposits, then you should move all the funds to a new single address.
     

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