While Bitcoin Fees Soar to Two-Year Highs, El Salvador Pays the Price

Bitcoin fees have hit a two-year high—and they’re continuing to climb fast. 

Data from Bitinfocharts shows that the current average price to make a transaction on the Bitcoin network stands at $31.14. 

The last time it was that high was back in April 2021 after they touched an all-time high of nearly $63 then dropped down again. 

Some even highlighted on Twitter how surging fees are hurting those using Bitcoin for everyday transactions: Marce Romero said that a $100 transaction in El Salvador cost over $20 to complete, adding that those using the network for "fkn jpegs" (referring to NFTs) should think twice—insinuating that there are more important use cases for using Bitcoin.

Why are they so high right now? If you want to make a transaction on the Bitcoin blockchain, you need to get it approved by a miner. 

Miners use powerful computers (usually industrial-sized operations) to solve complex problems which in turn validate transactions. They are then rewarded in Bitcoin for their work. 

If the network is busy you’ll have to pay more to get the job done—that's the transaction fee. And it looks like a lot of people are using the Bitcoin network right now. 

Some have said that the current clogged network is down to the surge in interest in Ordinals, a protocol used for minting NFT-like assets on Bitcoin. 

Bitcoin Transaction Fees Surpass Block Rewards for the First Time Since 2017

Amid Bitcoin’s recent spike in transaction fees, block number 788695 marks a special milestone for miners: For the first time since 2017, the transaction fees in a single block surpassed the block rewards doled out to miners. Transaction fees in the block clocked in at 6.7 Bitcoin, beating the block subsidy of 6.25 Bitcoin. Though this spike in fees has thrown a curveball to users, this block shows how it's benefitting Bitcoin miners, the global network of volunteers that run expensive, speciali...

There are options for those not wanting to pay much when sending or receiving the biggest cryptocurrency: When making a Bitcoin payment, you have the option of paying lower fees. Though by doing so, you risk waiting around for hours as miners prioritize more lucrative transactions. 

Bitcoiners can even choose to pay no transaction fee—but miners may completely ignore such transactions and it will never reach its destination. 

The Lightning Network is another option for lower fees: the "second-layer solution" speeds up transactions by skirting the main Bitcoin blockchain. Major businesses like Jack Dorsey-backed Spiral and MicroStrategy are trying to make it mainstream.