Recent weeks have seen a significant surge in the Bitcoin transaction fees, causing uproar and confusion among users. Blockchain consultant, developer, and researcher Udi Wertheimer has now explained the phenomenon, attributing it primarily to the element of “urgency”. While there is some misconception that full blocks are causing higher fees, Wertheimer explains that this is untrue and rather, users are paying these fees in order to get their transactions confirmed quickly.

Interest in blockchain inscription numbers also played a role in the higher Bitcoin transaction fees, as speculators strived to purchase low serial numbers that were thought to be of higher value than numbers issued later. Moreover, the rise of BRC-20 tokens compelled users to pay higher fees in order to have their transactions confirmed before the release of the token or before the limit is reached. These factors demonstrate that fees are not directly correlated to the size of the block or transaction but that it has to do with the necessity for speed and perceived value of the token.

Contrary to popular belief, Wertheimer also reveals that BRC-20 tokens related transactions will still motivate users to pay higher fees based on their profit expectations, despite any improvements in terms of efficiency or compactness. Unpredictability due to the fluctuating levels of urgency, however, is an inevitable part of the world of cryptocurrency.

Wertheimer welcomed these changes, stating they are a sign that the “zombie chain” era of Bitcoin is over. Therefore, users must remain open to the unpredictable nature of the fees associated with Bitcoin.



Other News from Today