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Sirwin

Litecoin, Bitcoin Cash, Other Classic Chains Surge Amid High Fees

By RJ Jenson | AnarchoCrypto | 10 May 2023


With the onslaught of NFTs and memecoins pouring onto the market, the fees for all the blockchains who host this nonsense have gone way up. This isn’t new for Ethereum, which has high fees all the time anyway, but now even Bitcoin has a protocol for them, which brought the largest blockchain’s trading fees upwards of $20 this week. The latest block (at time of writing), 788,987, shows that it’s come down to about $7 lately. That’s still insane, considering that the fees were under $1 for most of the network’s history.

via mempool.space

via mempool.space

If you scroll through the top rankers on coinmarketcap.com, you’ll see an obvious market-wide downtrend. This isn’t due to the high fees necessarily, but in that sea of red you’ll see a few green islands poking out. Litecoin is trickling upwards at just shy of 3% today, Bitcoin Cash is an impressive 9% up, and Bitcoin SV is up a staggering 35% in this 24 hour period. Other honorable mentions include Bitcoin Gold (BTG, 2.1%) and Bitcoin 2 (BTC2, 11.9%) and Ethereum Classic (ETC, 2.39%). What do all of these have in common? Barring Litecoin, all of these coins were designed to uphold some purist form of Satoshi Nakamoto’s original vision. Or so they say.

Bitcoin Cash was a hard-fork from the Bitcoin blockchain, going its own way in 2017, boasting higher block sizes (thus, faster transactions). Bitcoin Cash in turn forked, creating Bitcoin SV in 2018, which has technical differences all its own. Both coins think that they are the chosen ones as foretold by Satoshi’s whitepaper prophecies. Considering both coins' huge leap in price today, and that they're NFT-free fees are as low as ever, maybe there is a nugget of truth to that bold claim.

I’m not a purist, and even though I’m not personally interested in trading NFTs I can see the value in them (as decentralized copyright enforcement, for instance). I also see a huge market opportunity for Bitcoin to fill Ethereum’s vacant proof-of-work smart-contract shoes. If that happens, you can kiss sub-dollar transaction fees goodbye. The free market has a remarkable way of fixing every problem it causes given time, and that’s why the renewed interest in these forgotten no-frills blockchains. Upon these networks, there is nary an ape .jpeg, smug frog, nor canine to be found. Only money for money’s sake, and the low, low fees that result from that simplicity.

I wanted to send $15 worth of BTC to my friend the other day. Bitcoin told me to fork over an extra 20 bucks. I sent my friend LTC instead, and it cost me six cents. I love all the tech and innovation in these big projects, but let's not forget that people have to make regular transactions on these networks too.

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RJ Jenson
RJ Jenson

Writer of crypto stuff, humor, and music. Editor of Spud Underground, a free rock magazine. www.spudmedia.net


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