Bitcoin fees have always been quite modest, most of the time ranging from a cool 0.3$ to 2$ and usually never going beyond 3$, but in recent times, bitcoin had began behaving oddly...fees have been going down after the recent flash crash that had ruined many big portfolios - we're going to be discovering whether or not bitcoin is expected to reach fees of 1 cent after the halving that is expected next year.
It's all fairly fascinating. Before covering the main topic at hand which are fees and the price of bitcoin, lets first go over some context and where bitcoin is expected to go within the next few months and years.
Bitcoin is currently being put on a bearish banner by all major corporations and everyone's gobbling it up. Who are the people buying bitcoin right now? The big corporations. It's about to hit september, and according to historical graphs on bitcoin, that's the worst month for bitcoin every single year. Without fail, it goes down.
Buckle up I suppose... if bitcoin follows the traditional route, it'll be going down, but if we get lucky like we did in 2015 and 2016...who knows? Bitcoin might just shoot up 10%. It all depends on market conditions which are quite bad if you look at it from an objective and statistic-based viewpoint.
It's dissapointing, I know, but it's reality. This is the closest you can get to an honest analysis. The good news is that on october, Bitcoin is likely to turn green, big time. In the past 9 years, it's been up 7 of those years which is really good news - we might just be getting the bull run we need. On average, bitcoin shoots up 21% in october alone so going by that standard, we'd buckle in to expect atleast 5% - and that's being modest.
Here's a straightforward bitcoin analysis before we move onto the main topic of this article:
FEES. THE PART OF CRYPTO THAT EVERYONE OVERLOOKS. It sucks to have high fees, because it means that the more crypto is adopted, the higher these fees become - which also means that the poorer get poorer and the richer get richer. Fees of 2-3$ might not seem like alot, but they really are. They're half the transaction amount of most individuals in poorer areas of the world - let's take el salvador for example. If you buy something with bitcoin in a store, you can expect to pay 5$ for a water bottle. Most of you reading this article don't live in the U.S and know that 5$ is way too much for a single waterbottle, feel free to convert it to your own currency - but just know, that these fees aren't cheap. These fees are also exactly what's blocking crypto from mass adoption. I know most crypto fanatics love bitcoin and you should love it, because it really is a financial revolution. But it's a revolution for 1st world countries. 2nd and 3rd world countries don't get to participate in this revolution because they can't afford to. Buying crypto will never be a viable choice for them. Buying a car will be. It drives them places. Crypto just goes up roughly 40% on a good year which isn't much when all a family can afford to put into crypto is 200$. It's not life changing and it never will be.
I suppose the point I'm trying to get at here is that mass adoption is not going to happen. Which means that crypto fees might actually become a lot lower after the halving next year. Even if transactions increase by 20% for a week, fees might go down to 1$ - or even less.
That's all for today, here's a meme to lift your spirits:
