The news that Bitcoin and Ethereum have increased their transaction fees could seriously hinder their popularity, and trading ability. It has also allowed the lesser known and less popular cryptocurrencies, such as EOS and Dash to come forward and grow in popularity, especially since they have just announced that they are reducing their costs.
Bitcoin have increased their transaction fees to $5 per transaction. This increase makes this cryptocurrency completely unsuitable for smaller transactions, which will reduce the chances of this virtual currency becoming an everyday currency, in the same way traditional ones are. The question that is worrying Bitcoin investors particularly is whether this increased fee means that it is heading towards its own doom.
Despite promising that Bitcoin was going to be the future of global economy, the growing Bitcoin community has realised that it is actually full of false promises. The higher transaction costs are owing to the overcrowded network, but is making it harder and harder for people to make purchases with their investment, which has left investors incredibly frustrated.
Some Bitcoin community members have expressed their opinion about the rising transaction costs and have suggested Ethereum as an alternative cryptocurrency. With this increase in popularity though, has meant that their transaction fees are also rising, which similarly to Bitcoin is making it harder and harder to make purchases with their investment, and almost impossible for small transactions. Ethereum is perhaps an unusual coin to see on this list, but as the market capital grows, so does their transaction fees, putting this virtual currency on the same list as Bitcoin and Monero.
It is not all doom and gloom for cryptocurrency investors though, as some coins still boast a low fee. Take Dash, Litecoin and EOS for example. These coins have not seen a significant increase in their transaction fees, which is making them very appealing to investors. Unlike other coins, Dash has the option to do instantly-confirmed transactions through their InstantSend function, which actually costs ten times as much as a regular transaction, which has likely driven the average transaction higher than it could be. This just shows how low transaction fees could be.
With cryptocurrencies becoming more and more mainstream, and common, investors are perhaps taking more risks with their investments, and this includes investing in lesser known coins, where you might not experience such a high price, as you would with say Bitcoin, which has hit the headlines this week for its huge price surge, but with smaller transaction fees, allowing you to make purchases more easily with your chosen currency.
There are many sceptics when it comes to Bitcoin, with many professionals believing that it is an exclusive bubble that will come crashing down in time. Whether this recent increase in transaction fees is the start of Bitcoins demise is yet to be seen, and something that only time will tell; but it has been suggested that it will have a negative effect.
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