Over the past 5 days, the average commission for transactions in the Bitcoin network has decreased by 54%, however, some observers believe that network congestion may push investors to altcoins.
A week ago, the average transaction fee made a jump to the level of February 2018, but since then, it has fallen more than twice.
According to BitInfoCharts, the average Bitcoin commission decreased by almost 54% - from $ 6.65 on May 20 to $ 3.07 on May 25. The peak average commission price was $ 3.91, but now the average price has dropped to $ 1.65. Bitcoin Cash supporter Hayden Otto believes that the congestion in the Bitcoin network will continue, and this will push users to altcoins, as was the case in 2017:
“When the bitcoin network is operating at full capacity and a huge number of pending transactions appear, the coin will lose users due to altcoins. Most users who try to transfer funds convert them to other coins for withdrawal from exchanges.”
According to Otto, “this leads to a decrease in the dominant position of bitcoin” and a sharp increase in the same indicator for competing coins.
Otto also says that bitcoin halving had a “destabilizing effect on the functional dynamics of bitcoin,” although the situation has already begun to level off.
According to Otto, the number of unconfirmed BTC transactions has recently stabilized at more than 20,000 after it peaked at more than 80,000. Otto sees this as a sign that the economy of the bitcoin network is steadying after a halving.
Earlier, we talked about the fact that on May 20, the complexity of mining the main cryptocurrency decreased by 6%, while the adjustment of complexity also reduces network congestion. Otto says that just one adjustment is not enough:
“There has already been one adjustment for complexity after halving, but another 1-2 adjustments will be required for the complexity to return to normal. Due to reduced hashrate, blocks are created more slowly. Since the halving, the BTC hashrate has decreased by almost 30%, and complexity has decreased by only 6%, so a further reduction in complexity will be required before the average block interval becomes 10 minutes.”