The HiFi Bitcoin Letters
The HiFi Bitcoin Letters
Letter #214: Decentralized Money Comes With A Cost
0:00
Current time: 0:00 / Total time: -3:49
-3:49

Paid episode

The full episode is only available to paid subscribers of The HiFi Bitcoin Letters

Letter #214: Decentralized Money Comes With A Cost

Read now to learn how decentralized money may be worth any transaction cost the network might throw our way.

Dear Readers,

For most of Bitcoin’s lifetime, it has been relatively cheap to send a transaction across the blockchain. Payment processors commonly charge around 3% for domestic transactions, and upwards of 10% when sending money internationally. And yet, Bitcoiners can often use the network for less than $1 USD per transaction.

That’s not always the case however, and this week has turned into a perfect example:

The mempool has become increasingly full over the past several days, to the point where there are nearly 500,000 unconfirmed transactions as of writing — an abnormal occurrence to be sure, and one that has driven per transaction fees high above their typical average.

There are a few different theories being passed around as to why transaction fees are growing at such a staggering rate:

This post is for paid subscribers