Not Worried About Bitcoin Transaction Fees Increasing

Roger Ver pointed to a graph showing that Bitcoin transaction fees are rising and said that this chart should worry everyone.

I for one am not worried about this point.

If people are paying transaction fees, that means that they attach value to those transactions.

If people are paying rising prices for bitcoins, as they are lately, that means that they attach value to those bitcoins.

All things equal, I prefer having both of those values rising to having them falling.

Of course, having fees means that Bitcoin won’t be suitable for transactions with very small values. Those would need to find another crypto currency to service their need for free transactions.

But I have no problem with free transactions migrating somewhere else. Fees are rising because Bitcoin serves more transactions with an amount that justifies paying a small fee. Considering the amount of effort that goes into securing the Bitcoin blockchain, it is only natural to have fees. Considering that the value of the network and the value of individual bitcoins is rising in the long term, it is only natural to have fee income rising.

So, no, I am not worried that Bitcoin fees are increasing. That’s a nice problem to have. Like the rise in bitcoin prices it only shows that the Bitcoin network has value people are prepared to pay for.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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