Ninjastic
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Board Speculation
Re: Bitcoin dominance
by
thecodebear
on 25/04/2018, 01:09:03 UTC
Quote from: doycku on April 24, 2018, 08:24:02 PM
Quote from: siti25 on April 24, 2018, 04:15:25 PM
Quote from: Salemmia on April 21, 2018, 11:11:48 PM
Bitcoin dominance has been dropped to 39.2% from 45%, market cap is $382 billion now, are we moving towards another bull run like Dec?
Crypto currency such as bitcoin can be used to buy goods without intermediaries, meaning less need of a bank. Although traditional banking systems may charge high transaction costs, bitcoin allows global transactions to take place at a lower cost. that's the reason why bitcoin is getting more dominant.
But if the price of Bitcoin goes up, then the price for transactions will be higher. We already saw this when the price for Bitcoin last year rose to 20,000 dollars.


No that is not how transaction fees work. I see this so much online, people saying the transaction fees go up because price goes up. They are not linked at all. Transaction fees went really high because suddenly everyone was trying to buy bitcoin or send it to exchanges to trade or whatever. The blocks being filled up and people's urgency in getting transactions confirmed is what affects fee price, the price of bitcoin doesn't affect it. Note that recently while Bitcoin has been around $9000 the fees are about the same as they were a year ago when bitcoin was at $1000. Did you notice how fees continued being crazy as Bitcoin was crashing? Because people were selling or moving there bitcoins to exchanges to sell, if it was due to price then the fees would have been dropping when it started crashing. Bitcoin could be $100k and the fees could be 50 cents if there isn't much going on on the network and there is free space in the blocks.