Bitcoin is growing like never before and becoming cheaper to use

Bitcoin’s price is fast approach an all-time high, but its transaction fees, strangely, aren’t.

The cost of sending Bitcoins he had been notoriously tall this year. This is partly due to the increase in the price of the cryptocurrency.

But the price of sending the coin has plunged in the past month. It now costs an average of $ 3.50 to make a Bitcoin transaction, according to BitInfoCharts data. On October 31, that figure was over $ 13.15—73%.

So why is this happening? Bitcoin transaction fees increase when more people want to use the network. And with so many people and companies who buy cryptocurrency, surely this means more transactions and therefore more expensive fees, right?

Well, not necessarily, according to the experts he spoke to Decrypt. More and more people are buying cryptocurrency and pouring funds into the cryptocurrency world, but not necessarily using it.

“Obviously it’s hard to be sure, but my theory is that we’re seeing very low (relatively speaking) Bitcoin on exchanges right now,” Torkel Rogstad, a software developer at a crypto research firm Arcane, She said. “It seems like people are not that keen on trading at this stage of the bull run. Exchange traffic is what often causes commissions spikes, as people want to get coins to trade. “

Suredbits, A company aiming to speed up Bitcoin transactions, he said Decrypt that “more people they are not sending Bitcoin. “The company added that people using scaling technologies, such as Segregated Witness (SegWit),” relieve the pressure on costs. “

During Bitcoin’s all-time high of $ 20,000 at the end of December 2017, transaction fees reached $ 55. This is because people just went crazy with the coin and sent it around. There was more “mania,” experts said Decrypt.

This time, more people are buying Bitcoin, but not transacting – big tech companies like PayPal and MicroStrategy only buy currency and hold it.

Simply put, Bitcoin is right sitting in inactive wallets.

“There was a greater degree of mania [in 2017]”Added Rogstad.” Mania is not here yet. “

Pedro Febrero, co-founder of the Crypto Nerds academy and analyst at Quantum Economics, also said that “even if the price is pumping, that doesn’t necessarily mean an influx of users; it means more money going into the market.”

He added that “a lot of Bitcoin” has been taken off trade, in turn putting further upward pressure on the price. “The less Bitcoin is available for purchase, the more likely the price is to increase,” he said.

So, for now, it looks like it will be cheap to do what Bitcoin was originally designed for: making transactions.