Adoption for Bitcoin Advances amidst High Network Fee

[bitzizzix]

Yes, we are experiencing a period of high transaction costs. And a lot of requests happen because of that and can't help the atm, but eventually it smooths out and the transaction fees will drop again, when the hype drops. And this is only temporary, so there's no need to worry because high transaction costs have happened before and the probability of the current period is higher.
And if high transactions are going to bother you, you just need to wait for transaction fees to drop to do it, it's that simple.

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[thecodebear]

The fact that the Bitcoin network experiences high transaction and congested network shows that the miners and node providers are constantly active and demand is on the increase, this is the reflection in high fees, but also this attribute of Bitcoin is not new and it will not be the last time we will experience such hike and traffic on the bitcoin network.


Just as the Bitcoin network experiences similar network traffic and congestion from 2017 to 2018 this will still happen shortly so the best option right now is to look away from spending Bitcoin until miners can fix the network problems by increasing the hash rate to get the transaction confirmed asap and decongest the network to ease the troubles facing them right now.

That's not how mining works. The difficulty adjustment keeps it from working the way you think it works. You don't clear out the mempool by having a higher hash rate. You clear out the mempool by users refusing to pay high fees, therefore competition for blockspace goes down and fees return to normal.

In fact this has already happened. The fee spiked up to like $30 on Monday, now just a few days later it is already back down under $2. This is normal market dynamics. Unless there is some desperate need to make transactions immediately people will just wait if fees get high and and let the fees drop and the mempool clears out. Seems like the whole bitcoin world was freaking out over fees when the reality is fees went from like $2 to $6-$8 for a week, then spiked to $20-$30 for two days, the next day they were back down to $6-$8, then just another two days later (today) returned to $2.


The only time there have ever been sustained high fees is during the mania phase of bull markets because that's when millions of new people are flooding into Bitcoin at once and so activity on the network skyrockets until the bull run ends. Fees went to like $70 for a little bit in 2017, but were above like $20 for a whlie I think, and then went down to like 10 cents during the following bear market. Fees in 2021 passed $50 for a bit, and were probably above $20 for a while then too, then fell back to 50 cents to a dollar during the bear market. Bear market ended plus ordinals crap is taking up space so normal fee price is $2 these days (outside of the first week or so of this month when it was higher). All of these changes have absolutely nothing to do with hash rate.

[Cookdata]

This is not the first time that bitcoin is facing high fee issue, it happened in February 2021 and it lasted for almost two months until April when the mempool was not congested as it dropped abruptly to 1 sat/vbyte. Bitcoin adoption continues.

What that happened recently did not even take up to weeks. The mempool got to over 500 sat/vbyte and it has dropped to 42 sat/vbyte. Nevertheless, this shouldn't affect bitcoin adoption.

I'm more interested in that fees and there couple of things that are been ignored and we have to address that as a Bitcoin Marxist and community. All the fees going up are due to the BRC20 tokens hype, and to be honest, looking at that bitcoin development, Bitcoin Ordinals are not supposed to exploit this way but of course, I expect the OGs to keep shut and observed because miners are the main core of the network and as long as they benefit, they will allow the development otherwise, how will they create tokens on the network that is very slow, it is the best but let us not deviate from the negative impact on retailers and small holders.

I expect the fees to even go lower than this because the NFT facades are fading away already but I'm of the opinion that they become scrapped, but as I have said, what Miners made in the month of May alone exceeded what they made from January to April, we know who is enjoying the adoption.

[umbara ardian]

I'm not surprised by this because this has happened in the past. Despite the increase in fees, bitcoin continues to thrive despite the difficulties at this time when transaction fees are high. What we still need is to believe in the efforts of bitcoin and push the bitcoin community more strongly. So just expect Bitcoin to work again and move forward optimizing the Bitcoin network, improving the user experience, and maintaining its position as the leading digital currency.

[Yaunfitda]

I'm not surprised by this because this has happened in the past. Despite the increase in fees, bitcoin continues to thrive despite the difficulties at this time when transaction fees are high. What we still need is to believe in the efforts of bitcoin and push the bitcoin community more strongly. So just expect Bitcoin to work again and move forward optimizing the Bitcoin network, improving the user experience, and maintaining its position as the leading digital currency.

This high fees might be temporary though, we have seen already that the developers are already looking at it, and who knows, they might come up with a good plan, (not necessarily soft fork), to combat the whole spamming of the network.

And bitcoin will continue to survived despite all of this attacks, although the price is going down this month due to this whole network congestion. We still have the bitcoin halving coming up next year that we all have been waiting for as the catalyst for a bull run. So adoption will definitely grow, this will not delay anything on the horizon.

[Plaguedeath]

Bitcoin adoption will not stop even the fee is really high because people who are already understand about Bitcoin and know the reason why they choose Bitcoin, they will wait until the fee is cheaper or accumulate more money so it will not really hurt them. It's a matter of how rich or poor the person is, if he have a lot money, he will not really mind to spend more money to buy what he want, but for poor person, he will many times and calculate it.

[taufik123]

Bitcoin adoption will not stop even the fee is really high because people who are already understand about Bitcoin and know the reason why they choose Bitcoin, they will wait until the fee is cheaper or accumulate more money so it will not really hurt them. It's a matter of how rich or poor the person is, if he have a lot money, he will not really mind to spend more money to buy what he want, but for poor person, he will many times and calculate it.

But about rich or poor, it also depends on their mindset.
If the rich have a negative mindset about Bitcoin and won't make any investments when Bitcoin is in trouble like it is today, then they won't spend a penny.

The adoption of bitcoin is getting real and the crypto space is getting recognized.
there are still many who believe in Bitcoin and it will continue.

and Some network issues caused due to congestion due to Ordinal Euphoria with lots of NFT and BRC20 tokens.
But for now, the network is a little smoother and fees are around 100 sat/byte.

[lionheart78]

The list stated on @OP's post does not happen in just a week or month.  It was long planned probably several months ago or even years.  The school curriculum isn't easily changed or if there is any additional subjects, it will take several meetings before it is implemented.  I do think that those implementations will push through regardless of the Bitcoin network fee.

Bitcoin adoption will not stop even the fee is really high because people who are already understand about Bitcoin and know the reason why they choose Bitcoin, they will wait until the fee is cheaper or accumulate more money so it will not really hurt them. It's a matter of how rich or poor the person is, if he have a lot money, he will not really mind to spend more money to buy what he want, but for poor person, he will many times and calculate it.

Probably if it is just a short-term event but in case the high fee became a long-term event, it will obviously hinder adoption, worst it will make other holders look for an alternative where they process transactions at a much lower fee.  Plus I do not see the connection of poor and rich people here aside from the luxury of rich people spending more money than the poor ones.

and Some network issues caused due to congestion due to Ordinal Euphoria with lots of NFT and BRC20 tokens.
But for now, the network is a little smoother and fees are around 100 sat/byte.

It is good to know that the network fee is slowly returning to normal.  I couldn't imagine how will the market react if the high transaction fee stays for several months.

[el kaka22]

I think high network situation will go on as long as there is nothing that stops it. The fact that we are still paying for it shows proof that we are fine about it and there is nothing that we can do which would change anything about it. I think we should be more careful about it but that doesn't mean that we are going to end up with anything better, it's going to be more about the fact that high fee doesn't really mean less people.

If there were less people then the price would go down, but even with high fee there are still a lot of people who still pay for it so that means we are not going to end up with a solution. Just stop using bitcoin for a week, not saying sell them or get out, just not use it and you will see that gas fee will drop significantly without doing anything else.

[taufik123]

-snip-
It is good to know that the network fee is slowly returning to normal.  I couldn't imagine how will the market react if the high transaction fee stays for several months.

If it lasts a few months with network congestion and very high fees.
All bitcoin projects will stop, bounty managers will also not pay their members and there are many other negative impacts.
Hopefully, there won't be any more of these bottlenecks.
 

I think high network situation will go on as long as there is nothing that stops it. The fact that we are still paying for it shows proof that we are fine about it and there is nothing that we can do which would change anything about it. I think we should be more careful about it but that doesn't mean that we are going to end up with anything better, it's going to be more about the fact that high fee doesn't really mean less people.

If there were less people then the price would go down, but even with high fee there are still a lot of people who still pay for it so that means we are not going to end up with a solution. Just stop using bitcoin for a week, not saying sell them or get out, just not use it and you will see that gas fee will drop significantly without doing anything else.

There should be a policy about it. network congestion is an event that we don't want.
NFT Ordinal and BRC20 are just FOMO and it will end if Bitcoin transactions remain high as it is now.
With high fees and few people, the bitcoin network will be abandoned because it is too expensive for just one transaction.

See the picture below

source: https://glassnode.com/

On May 8, 2023, the number of active addresses on the Bitcoin network was 690,748 users and the number of active addresses has been steadily declining and is nearing the lowest level for the past two years.