Bitcoin Transaction Fees Drop To 2014 Levels
Current market stability has brought Bitcoin fees to a low
Source: pixabay
Blockchain research firm, Diar, reportedly see Bitcoin transactions hit a one-year high with a total of 9 million transactions in Jan 2019. One year from Bitcoin's highest peak in Dec 2017, Bitcoin's transaction volume continues to be healthy despite a drop in Bitcoin prices.
Interest in Bitcoin seems to be growing as observed by the increasing daily trading volumes over the past 6 months. Source: BitcoinExchangeGuide
A study by Hasu, a blockchain analyst noted the reduction in mining rewards. The increased efficacy of blocks on the Bitcoin network has led to lower demand for newly mind blocks.
We also take note that Bitcoin's mining rewards will be further halved in the near future. While this may not be great news to BTC miners, this could lead to a shift in the dominance of large Bitcoin mining farms.
Source: pixabay
However, low transaction fees also indicates that Bitcoin transactions are more efficient than traditional remittance institutions. Also highlighted in Diar's latest issue, Coinbase's Vice President, Dan Romero, is tackling the high cost of remittance fees especially in emerging markets.
"Use cases in developed markets will be different to those in emerging markets as the US and Europe have a fairly well-developed financial system. Our mission is to build out the ecosystem so that we can move away from the narrative of crypto only being a speculative investment. We need to move the technology into the Utility Phase", Romero stated.
While top remittance outflow corridors have a competitive transaction cost between 4 to 8 percent, regional remittance fees in Africa, Latin America and South-East Asia could hit 15 to 21 percent. Imagine transferring $100 and only $80 reaches the other end.
Source: Wikimedia Commons
CCN discussed about the opportunity to use Bitcoin for remittance. Unfortunately, citizens of India paid the high price of $2.3 billion last year to clear payments coming into the country.
Nischal Shetty, the CEO of local Bitcoin exchange WazirX, wants the Rs. 15,000 crores paid by Indians in a year to go back to its people. Bitcoin's trustless system takes away at least some of the middleman in the remittance market.
If Bitcoin can be used to transfer money from one region to another and a domestic remittance service provider is used to bring the money to the receiver at the final phase, it could save a significant chunk of the income received by expat workers.
Source: CCN
we are now facing a bearish market that's why every cent of trading fee is important, and I just knew that kucoin exchange platform is now updated they are also offering a free trading fee for all of the their trading pairs it is limited time offer only but it can help us save a lot.
Currently one can actually transfer Bitcoin fairly easy between countries, for instance there will be no tax to be paid when transferring to and from South Africa, although the exchanges will charge commission. (I however suppose one will need to declare an income for Tax purposes)
Hi @rynow, yes agreed that it is still the exchanges that are charging its customers commission. The actual transfer may only be a 0.5% fee, but exchanges can charge 1-5%. I would say it is relatively lower than what some remittance institutions charge today :)
it will be interesting to see how this all develops over time, the more people and business that use crypto the faster it will become mainstream
Hi @paulag, banks use a complex system of checks and approvals to ensure that money its secured and transferred on a private server to another. That has become slow and costly as compared to blockchain based solutions. But because of privacy issues, banks are unwilling to adopt the technology. Perhaps remittance is a good starting point.
banks are a pain in the arse. even the likes of paypal annoys me and I have to use it on a regular basis. getting at my own money is sometimes made difficult. When it comes to payments and banks, I think Ripple are leading they way :-)
The current global banking system has too many protocols and is generally slow and tedious for many people, I think that gradually bitcoin plus other currencies will be the ones to take control due to their nature and efficiency.
The bank 'industry' needs a full revamp. Personally I do not think that the senior management in a bank makes money secure in any way more than the blockchain has.