Is the $84 Transaction Commission enough to Keep Bitfinex Survived?January 16, 2020
Sydney Ifergan Tweeted: “Move $1,100,000,000 of value for $84. This happens only with #Bitcoin.”
BitFinex was the exchange that made this move. It is truly inspiring to move $1,100,000,000 of value in Bitcoin for $84; however, it is scary because we are just getting used to transferring huge sums for less cost. This is indeed going to be the future of transactions.
There was yet another twitter enthusiast who tweeted: “The costs of running the bitcoin network exceed 2 billion annually while SWIFT moves trillions in a day at an annual cost of 870 million. Sometimes you have to think.”
And, is this transaction commission enough to keep Bitfinex or other cryptocurrency exchanges survived? Leave alone the making-it-cheap for the users. Is this process sustainable?
At the cost of socializing funds, are the miners benefited? For every 10 minutes, we have 25 Bitcoins created — a lot to think indeed in terms of regulation of the electronically transferred money and digital currencies.
Bitcoin Has Been Up By 20%
This year the price of the Bitcoin has been up by 20%. Experts predict the price might hit $16,000 by the end of the year. At the time of writing the news, the price of the Bitcoin is currently trending at $8,669.
The recent price surge is related to the geopolitical tensions, and fear is the driving factor more than mass adoption and increased trust. However, Bitcoin is not about trust; it is about verification. And any digital currency transaction is about verification.
Bitcoin Miners for Profit during Appreciation
Why individuals invest in becoming cryptocurrency miners? Some miners are looking to get Bitcoin without having to transact with others. There are yet other miners who are in to ensure that the network got distributed correctly. Whatever the reason, every Bitcoin miner is in here for profit. People make money when the price of the token appreciates. Miners continue to invest in hardware, and they are going to continue mining until they are profitable. The network will exist for as long as miners exist.
Unfairly cheap transaction fees do not come for free. If they do, will they be sustainable? The operation cost of nodes should be covered, though. Miners are happy for as long as the price moves up and is in the bullish trend; however, what makes the price of the Bitcoin move?
The bulk of the people sustaining the system need to profit in a decentralized manner. Geopolitical issues are suitable for price appreciation of Bitcoin; it is not good for the world, though.