- The three-month decline in network difficulty ended in August.
- Bitcoin’s average transaction costs dropped to $0.825 on Monday.
For the first time in more than two years, Bitcoin (BTC) blockchain transaction fees have dropped below $1.00, further bolstering its use case as a viable mainstream financial system.
Having to pay a significant amount of money to send a little amount of money through a blockchain network is inconvenient. For instance, during the NFT craze, transaction costs on the Ethereum blockchain increased by many orders of magnitude, putting undue strain on casual users.
There have been times when Bitcoin transactions were slow and expensive, but improvements like the Lightning Network and Taproot ensure that this will never happen again. Bitcoin’s average transaction costs dropped to $0.825 on Monday, the lowest level since June 13, 2020.
Eased Mining Difficulty
The decline in transaction fees may be attributable to a few different things, including timely upgrades, decreased market prices, and reduced mining difficulty. As miners gradually get access to less expensive gear after a protracted chip scarcity, the difficulty of mining a new BTC block has been steadily recovering.
The three-month decline in network difficulty ended in August, with the metric eventually returning to a level of 28.351 trillion. Thanks to persistent efforts by the Bitcoin community, the network maintains the characteristics of a robust monetary system.
Users often believe that newer versions of a network would result in lower gas prices and faster transactions. For instance, the most anticipated improvement to Ethereum, known as “The Merge,” will not result in cheaper gas.
As part of the Merge update, the Ethereum mainnet’s current execution layer is integrated with the Beacon Chain, making energy-intensive mining unnecessary.
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