Most people own less than .01 BTC
The fees to sell or transfer this .01 BTC is getting absurdly expensive and will continue to rise. My theory is the fees will become so high that most people will just hold onto their BTC rather than sell. Eventually the addresses holding huge amounts of BTC will start to sell. It will clog the blockchain and fee prices will sky rocket even more. The transfers will take longer and longer to confirm and everything will get "stuck". I believe this will fuel more and more panic selling as everyone tries to cash out at the same time.
What do you think about bitcoin fees and the .01 theory?
The fees to sell or transfer this .01 BTC is getting absurdly expensive and will continue to rise. My theory is the fees will become so high that most people will just hold onto their BTC rather than sell. Eventually the addresses holding huge amounts of BTC will start to sell. It will clog the blockchain and fee prices will sky rocket even more. The transfers will take longer and longer to confirm and everything will get "stuck". I believe this will fuel more and more panic selling as everyone tries to cash out at the same time.
What do you think about bitcoin fees and the .01 theory?
Bitcoin fees have increased because of the huge numbers of transactions are piled up in the queue. Today only, I sold around 0.0304 bitcoins to my local currency and the transaction fees was a whopping $15. Which was usually around 2 to 3 USD at Normal times. However the transaction got confirmed within just 20 minutes.
So I can't say people will start panic selling just due to the high fees or network congestion. It is least likely to happen. The kind of positivity is running around the market, it will hold up the price higher. It is just that a lot of new investors are pouring in to crypto market every single minute. The network was not prepared to handle such traffic. I believe the situation will be normal within one more day and it has started to normalize. There's no looking back now.