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WHOA! Bitcoin’s Transaction Fee is UP 623% in the last 3-Weeks LET’S REVIEW!

VIDEO TRANSCRIPT

Hey, what’s going on, everybody? This is the blockchain backer bringing you the latest cryptocurrency news and analysis today. We’re going to be taking a look at several things within the cryptocurrency space. But the first thing I have right here is the Bitcoin, the average transaction fee. Yesterday, over on my Twitter page, I had posted that the Bitcoin transaction fee is rising and it’s now at three dollars and 43 cents during the height of the 2017 Bull Run. The fee was fifty-five dollars to send any amount of Bitcoin. For example, if you were sending fifty-six dollars worth of Bitcoin, it would cost you fifty five dollars and you would receive one dollar of Bitcoin on the other end after you sent your transaction. I remember this very clearly and what this was like. It was this, you know, when you wanted to buy old coins, you could not buy them on Coinbase, you could buy Bitcoin a theorem and lite coin. Can’t quite remember if you could buy Bitcoin cash at that time. You may have been able to, but I know you could buy bitcoin at 3 am and light coin and it became apparent that, hey, you know what? If I actually buy a theory, um, and then send that over somewhere else to buy the old coins, it would cost me at last and it would get there faster. And then I think even at that time, light coin. And then it was like, oh, wait, will like coins actually even a little bit faster and a little bit cheaper to send than Bitcoin because Bitcoin was taken like six hours to process and costing you like twenty-five to fifty dollars to send it. So you couldn’t buy any, you know, small amounts. Right. Like if grandma is going to come in and buy some bitcoin, grandma is probably not going to come in and drop two thousand dollars and be OK with paying a twenty-five dollar fee. No, Graham is probably going to come in and say, OK, well, I’ll put down a hundred dollars and then lose twenty-five dollars immediately by sending some type of transaction or fifty-five dollars immediately by sending some type of transaction. But I remember that moment very clearly and how really the whole market woke up to the idea that sending bitcoin was not the optimal thing to do. And I think that played a really big role in SRP getting that really second big pump up that we saw and how it happened so dramatically and so fast that the one at the end of 2017 if you wanted to send your money from the exchanges back over to Coinbase, you couldn’t send Bitcoin, you would spend an exorbitant amount of fees and you’d be waiting probably 24 hours for it to get there. I do remember one time I had to go to bed because I sent it in mid-afternoon and by the time nighttime rolled around, it still had not gone through and I had to go to sleep. And then the next day it finally arrived in my coin base account or wherever I was sending it. But yesterday when I posted this, the fee was at three dollars and 43 cents. Today, the fee has risen and it’s now at four dollars and five cents to send a transaction with Bitcoin. Now, this could have to do with the Bitcoin halving. However, this did kind of start to bump up with the hash and the fee started actually before the having happened. So we saw it suddenly kind of pop up and go. Now, I would expect the same thing to happen if you saw like a forty thousand dollar Bitcoin price, fifty thousand dollar Bitcoin price were probably back in the same boat again. And what do you do? I mean, like, seriously, if we think about that for a minute, what happens if we get back to all-time highs and that Bitcoin transaction fees? Fifty-five dollars again. Then what happens if we break all-time highs and then the Bitcoin transaction fee becomes like two hundred dollars to send a Bitcoin transaction? It’s hard to even fathom what that would really be like. It just doesn’t make any sense. And it’s like, why would Bitcoin even be pumping in the first place if the transaction fee got that high? You know, the only thing you could really do with Bitcoin as an as a retail investor, somebody new coming into this space would be to log on to Coinbase, buy Bitcoin, let it sit there and then sell it again later. That would be the only use case for Bitcoin would be to sell it to the next person who will pay more for it. Now, I don’t want this to come across as me just creating some type of bashing video for Bitcoin because I own Bitcoin. So I’m not trying to kill my own investment here. What I am saying is this problem has not been resolved during this entire bear market for dollars for a transaction fee is unacceptable when you have a four dollar transaction fee. It means you can’t do any transactions under four dollars. The idea of buying a cup of coffee is literally impossible because the transaction fee is more than a cup of coffee. I did have somebody respond on my Twitter post and say, hey, you know, good services will have a fee. You should expect that there would be a fee with something like this. But I’m like, well, wait a minute, I can do it faster with X Arpey and not pay any type of fee. I mean, if you want to call one cent fee. OK, well, I have to pay a penny and I can get it there in a minute. But this type of transaction fee completely pushes Bitcoin out of any type of reasonable use case except for a buy and hold on Coinbase and sell it to the next person willing to pay more for it. Because why would I walk in and let’s say I go to a retailer and I want to buy like a. The game, right, like a 60 dollar video game. Why would I walk in and pay the 60 dollars and also pay a four dollar transaction fee and then wait an hour when I can use my Visa debit card or my credit card swipe at. Pay it instantly and pay no fee. There’s literally no reason to use Bitcoin for any type of transactions. When the fee gets hired like this, the only use case for Bitcoin is to buy it, hold it and sell it to the next person who’s willing to pay more for it. This problem right here, I believe, played a very big role in why X Arpey fired so high and so fast and vertically as it did at the end of the 2017 Bull Run. And for those who are heavy in altcoins or heavy an X or Arpey, you were witnessing it right here. An additional use case. We talk a lot about, you know, international payments. But I’ve brought this up before that one of the use cases forex Sarpy is also transferring within the crypto space. And so long as Bitcoin is transaction fee is rising and the network slows down, it creates a bigger use case for people within crypto to start sending ex Arpey back and forth. So it’s unfortunate to see this. I actually don’t like it. First of all, it’s great. It’s a great forex Arpey. That’s something like this would happen. But I don’t like seeing this because you’ve got to be real, right? Bitcoin is the branding of cryptocurrency. It’s the one that everybody knows about. If you if you’ve heard the term cryptocurrency, you’ve heard the word Bitcoin. So if you went up to grandma and you said, hey, grandma, do you own any cryptocurrency? Her response is probably going to be, oh, you mean Bitcoin? She’s definitely not going to say, oh, you mean a theorem or a theorem, classic or lite coin. She’s not going to know any of that stuff. She’s going to know Bitcoin. And if the response is, doesn’t it costs like don’t you have to pay like five dollars to buy something? When you buy with Bitcoin, the consumers will run away from that in a heartbeat. You can’t sell consumers on spending more money. You just can’t do it. Consumers won’t buy it. They won’t care. It has to be fast and it has to be nearly free. Here’s a look back at the five-year chart. And you could see how Bitcoin did reach all the way up there to fifty-five. Twenty-seven per transaction. It’s just it’s wild to me that this problem has not been resolved and that something like this can continue to happen. Now, when we look back at the 2017 Bull Run, you could see that it did get up to, you know, eight dollars and then, you know, twelve dollars and then six. And, you know, so people clearly did tolerate it for a little while. Right. So, you know, it’s still it didn’t hamper Bitcoin, still running up to these crazy prices until it finally started getting parabolic on the feed. So the PE fee went parabolic in December. It went from seven dollars to fifty-five dollars. Whether or not that’s going to be the stopping point, you know, as it does or become a point where people just aren’t willing to pay that fee anymore, it just got so ridiculous. They said no more. So I mean, I would think it looks like people will tolerate this level right here, somewhere between 12 dollars and, you know, just anything under twelve dollars. It looks like investors will tolerate it. But if it starts breaking out above that, we get back up into these levels all over again. That’s where you have to start kind of saying, well, I don’t know about Bitcoin. You know, obviously, I have forecasted that the Bitcoin price would reach up to eighty thousand dollars even seeing the stuff. I still believe that so long as these fees don’t get absolutely ridiculous and get back in the fifty-five dollars. And if this chart is reflective of how high the feed gets, when the price reaches certain levels, then we’re going to see fifty-five dollars again right when we get back to the all-time high. Part of me doesn’t suspect that’s what happens. I think it just becomes with how congested the network actually ends up becoming when the fee gets that high. Will the network be as congested as it was during the last two thousand 17 bull run? We have no clue right now. We’ll have to see how that comes through. We kind of grind up there to that all-time high or do we fire up their parabolic lay? And if we climbed up parabolic early, then you could absolutely expect that these transaction fees would rise like that again. But we’ll see how this goes. But all right, guys, that’s going to be it for this one. I really just wanted to kind of dive into that. I’m going to put out another video later and we’ll kind of dive into some technical analysis and stuff like that. This video is really just kind of focused on the Bitcoin transaction fee and reliving through the history of what that was like now that we’re starting to see that transaction fee rise again. It’s kind of like, oh, wow, that this actually could end up happening again. We go back into a new bullish cycle and we watch the transaction fees start firing up, which ends up being a very strong selling point for another cryptocurrency besides Bitcoin because in the end, consumers want to save money and they want to do things quickly. All right. I wanted to show that to you guys. I want to thank you so much for watching. Please like this video and give it a thumbs up. I can promise you by my gentle is not about bashing Bitcoin. This is my own Bitcoin. I hope that Bitcoin becomes a big thing one day. But, you know, we have to point out these things when we see them. Right. Put our heads in the sand and pretend it’s not real. So, OK. If you’re if you do not subscribe to my channel, please subscribe. That way you can be notified when I create new content and when I go live. As always, this is not investment advice and I am not a financial adviser. But if you ever need a pick me up or a little bit of reassurance, just remember that the blockchain backers got your back. Have a good one.

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