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Bitcoin Transaction Fees – Need Something to Happen Faster Pay for It

Bitcoin has been grinding in the sideways extension.  Several cryptocurrencies are in the consolidation phase, and investors are looking towards the next significant move in the market to reap in their profits.

Since the Bitcoin is not pushing higher, analysts are suspicious of whether the bearish trend is returning for the Bitcoin.

Meanwhile, Bitcoin is considered to be the solution to sort the dollar depreciation disaster.  Previously, the US banking system collapsed, and it disturbed the world economy all over.  They lent to cover for derivatives trading, and the overall economy became gloomy, and it took several years for it to recover.

Donald Trump recently tweeted:  “People are disappointed about Jay Powell and the Federal Reserve. The Fed has called it wrong from the beginning, too fast, too slow. They even tightened in the beginning. Others are running circles around them and laughing all the way to the bank. Dollar & Rates are hurting…”

Several economists voice the same opinion about Trump’s war of China as having caused damage to the US economy than the high-interest rates.

As the Federal Reserve mints more money, the value of the dollar deflates even further.  The dollars are buying less and less.  Banks are taking steps to prevent yet another 2008; however, the Bitcoin is now the solution to all this.

The algorithm that the Bitcoin relies on is not perfect.  The overall limit on the Bitcoin is set to 21 million coins suiting the anti-inflationary rule.  Arriving at the inflation rate for a volatile token like Bitcoin continues to be a question.

Newly-minted Bitcoin will be rewarded for their efforts.  These rewards are meant to compensate and pay for the computational efforts rendered to sustain the Bitcoin Blockchain.

It will be 2140 before we can be entirely out of the Bitcoin; however, after the halving, the rewards to miners will also go down. When Bitcoin mining is not profitable, miners will not be interested in minting it.

Eventually, it works for Bitcoin-like; if you need something to happen faster, you need to pay for it.  The transaction fees are not a part of the original design.  It just became a part of the system as it became necessary to return for the mining services.  The coming of the fees for the Bitcoin also brings with it some problems.

Analysts opine that eventually, Bitcoin transactions will touch a point where they will have to wait for as long as they are already waiting in traditional transactions.

 

Marjory Lewis

Marjory is a science graduate with interest in new technological innovations. She has been attracted to blockchain from the very beginning and covers bitcoin and blockchain news for Bitcoin Journal.

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