Why did bitcoin transaction fees increase?

Since January, transfer fee bitcoin It exploded due to a very simple phenomenon.

Bitcoin transactions undermined by a protocol?

Since last January, Bitcoin enthusiasts have noticed a continuation of a phenomenon: the transfer fee On the blockchain currency exploded. The fault may lie in a new protocol.

Actually, The Ordinals Protocol, published in early 2023, upsetting an entrenched system in the industry. Since its inception, With them NFT It can be stored on the Bitcoin blockchain and not just on Ethereum. according to bloombergAnd its success is that transfer fee Keep increasing.

Wanting to test this new feature and take advantage of the rise in BTC at the same time, The respective blockchain users mint several hundred NFTs each day before storing them. In the face of this explosion of activity, the famous fee has risen by 2% in the past few days.

Source: Bloomberg Crypto Twitter account

However, there is good news: The phenomenon can make sense once the audience’s enthusiasm subsides. However, expect, after the integration of non-fungible tokens, to see fees remain a bit higher than before.

Bitcoin transaction fees

Increase with that necessary?

While complaints about the increase in transfer fee Bitcoin continues, a user had already reported the issue to the developer of the Ordinals protocol on January 21st.

However, Casey Rudarmore did not provide the expected answer. according to him, Increasing its amount and introducing new fees is necessary for Safety blockchain. for him, It will also make minted NFTs more profitable to sell.

Source: Casey Rodarmor Twitter account

It is the beginning of a new era for the Bitcoin blockchain., which seems to be definitively giving up its role in simple financial transactions. So it is not certain that first watch users will find themselves in this controversial reversal.

Moral of the story: Bitcoin welcomes change but may forget to stick to its principles.

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