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Investor Ari Paul has explained the fundamentals of Bitcoin's high transaction fees



Cryptocurrency expert Ari Paul has weighed in on the debate over Bitcoin's transaction fees, claiming that its size doesn't really matter.

His comments play into the hands of Bitcoin advocates who agree to pay more expensive transactions instead of giving up the security of their network.

High transaction fees are at the core of the war of scale that has led to the creation of two new holders: Bitcoin Cash (BCH) and Bitcoin SV (BSV).

By increasing their block size to 8MB and 128MB, respectively, these two holders were able to significantly reduce transaction costs, but centralization was a painful tradeoff.

Meanwhile, Blockstream's Gregory Maxwell was opening champagne in December 2017 when Bitcoin's mempool jammed so much that users had to pay $ 50 for the privilege of submitting a transaction.

Over the past month, Bitcoin's average transaction fees rocketed from $ 0.63 to $ 4.1, representing a 543% increase.

image by bitinfocharts.com

Paul claims that the cost of a transaction is practically zero from a purely technological point of view, compared to an email.

It is necessary to pay fees to maintain the security of a certain network, thus avoiding double expenses, reorganization blocks and other problems.

Cryptocurrency miners have to be incentivized to confirm transactions and support decentralization of the network.


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