Bitcoin (BTC) has recently witnessed a staggering increase in gas fees, with a merchant paying a whopping 83.65 BTC, equivalent to $3.14 million, for a single transaction. The transaction was recorded on the BitinfoCharts cryptocurrency analytics platform, linked to a Bitcoin wallet labeled “bc1qyf…”.
The transaction took place at block height 818087. The sender had intended to send 139.42495946 BTC, worth $5.23 million, but only 55.76998378 BTC was received, leaving a difference of 83.65 BTC as the spent fee.
While such massive transaction fees are rare, they are not uncommon, considering that the network does not have a fixed pricing mechanism like the fees users pay for transactions.
While it is still unclear whether these high gas fees indicate a resurgence of related fake fees, retail users continue to complain about the relatively high cost of using the Bitcoin network. The introduction of layer-two solutions like the Lightning Network has aimed to address this issue by tackling gas fees and improving transaction speed on the Bitcoin network.
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The Lightning Network has been instrumental in changing the game in multiple ways, with several trading platforms, including Coinbase Global Inc, adopting the technology to enhance their payment offerings.
Renowned investment banker Cathy Wood, a long-term advocate and supporter of Bitcoin, has praised the technology, noting that it will contribute to the wider adoption of the cryptocurrency.
In conclusion, Bitcoin’s recent record-breaking gas fee highlights the ongoing challenges associated with transaction costs on the network. However, advancements like the Lightning Network offer promising solutions to address these issues and promote the wider use of Bitcoin.
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