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But lingering uncertainty over the outcome of the U. Any such package could see weakening of the U. Meanwhile, analysts have cheered moves from the likes of PayPal and Facebook in the cryptocurrency space lately. PayPal said it would let its customers buy and sell digital assets like bitcoin and ether through its digital wallet and eventually use them for shopping, while Facebook is developing its libra digital currency with a Switzerland-based consortium called the Libra Association.
Still, regulators continue to scrutinize the cryptocurrency industry. But now the bad news: Bitcoin transaction fees have also increased to the highest price since January , according to data from BitInfoCharts. Thirteen dollars! That means that the average cost of a Bitcoin transaction has increased by about nine times in under two weeks. And remember what happened in January ?
Bitcoin fees are a sign of hubbub on the network. They increase when the number of miners available to process transactions is not sufficient to handle the number of transactions that people want to be processed. In this freest of free markets, miners increase the fees to compensate for the increased activity. The theory is that only people who desperately want to process transactions will cough up the extra money.
As Bitcoin's price rises, more people flock to the network.
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