We complain about bank charges but, we still continue to pay them: you have to keep your bank alive, it’s for a good cause! In the cryptosphere, we are more picky about transaction fees. Besides, except on Bitcoin (BTC) and Ethereum (ETH), they would be almost zero.
(Almost) 0 transaction fees for altcoins
According to the analyst firm Messari, 99% of the fees generated by the crypto markets go into the pockets of minors Bitcoin and D’Ethereum.
Mining requires expensive equipment worth several thousand dollars, not to mention the huge electricity costs required to operate the machines. Only Bitcoin and Ethereum would allow miners to be profitable today.
The logical conclusion would therefore be that the transaction fees on all the other blockchains are almost zero.
To qualify this “gross observation”, the data published by Messari indicate that the Dogecoin ((DOGE), would be one of the most profitable altcoins, after Litecoin ((LTC) and the Monero ((XMR).
Cryptocurrency developed in 2013 as a joke around the dog breed Shiba Inu, has reached a capitalization of $ 60 million.
1 USD fee is already too much!
The amount of transaction fees is the subject of recurrent discussions in the cryptosphere.
Altcoins like Bitcoin Cash ((BCH) or Zcash ((ZEC) remain more attractive to newcomers to the cryptosphere, no-coiners who would not be willing to pay exorbitant fees.
However, it should be noted that the transaction costs on Bitcoin recently dropped for the first time to less than $ 1 since halving: the last period when fees were at this level dates back to January 2020. Fees have since increased to $ 1.50 .
On the side ofEthereum, users are preparing to launch version 2.0; the use of gas on the network experienced a significant increase, no doubt linked to an increase in decentralized finance activities.
Are transaction fees a good thing or a bad thing for blockchains? Yes, we are all a bit tight (right?) But, they are necessary for network security. BTC Whales would not make as many movements if transaction costs were only 0.1% of transfers.
Litecoin, welcome in the Silver Age