This week, digital currency enthusiasts have been discussing network fees, specifically the transaction fees associated with Bitcoin and Ethereum blockchains. Last Sunday, June 21, an Ethereum advocate noted that for the past 16 days, Ethereum users have paid more to take advantage of the network than Bitcoin users.
Digital currencies like bitcoin, ethereum, bitcoin cash, and litecoin have a network or miner fee associated with sending each and every transaction. This means that to send a fraction of bitcoin (BTC), there must be enough BTC in the wallet to also cover the shipping fee.
At press time, data site bitinfocharts.com shows that the average BTC network fee was $ 1.14 per transaction on June 22. Ethereum (ETH) network rates show that day’s average rate was around $ 0.62 per shipment. Bitcoin cash (BCH) has an average fee of $ 0.006 per transaction or six tenths of a cent of the United States. Now, not all BTC rate recording websites are exactly the same as there are many different averages depending on the site used.
According to the fee calculation website offered by billfodl.com, the next block fee required for your transaction to be drawn in the next block (10 minutes) is $ 0.87 today. Similarly, for June 23, the average rate to enter the next three blocks is the same price. If a person paid $ 0.73 per BTC fee, the transaction would possibly be confirmed within six blocks (1 hour).
The six-block fee would bring ETH’s transaction fees closer to the current BTC fees that bitinfocharts.com shows is $ 0.62. The Coin Metrics charts show that ETH transaction fees have been consecutively higher than BTC fees in June. Well-known ETH defender on Twitter Eric.eth (Eric Conner – @econoar) told his 15,000 followers on Sunday:
For 16 consecutive days, Ethereum users have paid more to use the network than Bitcoin users.
Since the tweet, Ethereum transaction fees have decreased based on Coin Metrics data. The web portal ethgasstation.info, a website that offers ether gas price recommendations, notes that ETH rates are much lower than the BTC average when it comes to statistics at billfodl.com.
All of the fees measured in gwei highlight that the amount of gas needed to send an ETH transaction and an ERC20 token is also $ 0.26 for the fastest transaction confirmation time. Each lower tier is just one penny from the US. USA Cheaper for standard and secure transactions but at low fees.
Now, for the past few years and especially since 2017, we know that when the price of ETH or BTC increases and is used more frequently, the rates grow much more. In the heyday of 2017, BTC fees increased more than $ 50 per transaction on December 22, 2017. That same day, ETH fees were around $ 1.40 per ETH transaction.
Now this is not the case with bitcoin cash (BCH) as the block size has increased to 32MB. Before the block size update, that same day in mid-December 2017, the average BCH fee increased to $ 0.31 per transaction. However, during the stress tests of September 2018, after confirming more than 2.4 million transactions per day that exceeded 5 times the best day of BTC, the average transaction rate of BCH (txn) was $ 0.003 per txn.
Since then, BCH fees have not increased beyond the $ 0.008 txn rate naturally and have been consistently below one US penny per transaction for the past two years. According to Coin Dance statistics, it is currently 815.51x more expensive to transact in Bitcoin (BTC) on June 23, 2020.
Transactions in the Bitcoin Cash chain are also much cheaper than transactions in ETH, as it is 8,566.66% more expensive in ETH than it is to take advantage of Bitcoin Cash. All of this data is publicly available by leveraging sources like ethgasstation.info, bitinfocharts.com, data from Coin Metrics, and billfodl.com.
What do you think about the difference in transaction fees between ETH and BTC lately? Let us know what you think in the comment section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, ethgasstation.info, bitinfocharts.com, Coin Metrics data, billfodl.com.
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