And to say that we boasted a few months ago, lower transaction costs on the blockchain: halving blew transaction costs on the Bitcoin network (BTC). These numbers are expected to drop and, it is better for them to return to normal; otherwise, the banks may be jubilant.
A remake? Not this time
Network transaction fees BTC had experienced an increase before the first 2 halving, then a decrease just after the latter.
The transaction fees had increased by 300%, 2 days before the first halving of November 28, 2012, before returning to their normal level 2 days after.
Same scenario during the second halving of July 9, 2016: transaction costs had jumped by 200%, going from 0.081 USD on May 1, 2016 to 0.24 USD in mid-June 2016 and at the end of July 2016. These costs then recorded a decrease of 8%, 3 days after the second halving.
The scenario is apparently different during this 3th halving: from April 11, 2020 to May 14, 2020, BTC transaction fees increased by more than 1,250%, going from 0.38 USD to 5.16 USD. Since the May 11, 2020 halving, these costs have increased by 36.5%.
2 times more in 3 days
Average transaction costs BTC have increased by more than 800% in the space of a month, May has the highest transaction costs since July 2019.
Fees have increased by more than a third since the halving, exploding transaction fees by 105% over 3 days.
Despite the current record over a period of 1 year, these figures remain below the records recorded at the end of 2017.
For the moment halving seems to do more harm than good, more victims than winners. Bitcoin is crossing the swamps, a muddy path forced towards the little corner of paradise so hoped for. But if high transaction fees deterred Joking Whales from making big deals, negatively influencing the price of BTC in the process, then it may be bad for good.
Litecoin, welcome in the Silver Age