Bitcoin FUD is available in all styles and sizes, starting from unbridled power consumption to rampant crime.

Since 2017, the World Economic Forum has been warning that Bitcoin will finally devour extra energy than the complete world. Governments round the world have been campaigning towards Bitcoin mining and warning about its results on local weather change.

Regulators have additionally been waging a war towards Bitcoin. Law enforcement businesses and central banks claim it’s not a safe community because it’s susceptible to assaults and manipulation whereas offering infrastructure for cash laundering and crime.

However, all of those claims aren’t solely unfounded but additionally fully false.

While they may very well be disputed in quite a few methods, Bitcoin transaction fees present the easiest rationalization.

Bitcoin transaction fees are the lifeblood of the Bitcoin community and are what secures the community each in the quick time period and in the long run.

Those important of the community worry that as block subsidy reduces with every halving, the fees alone received’t be sufficient to maintain miners from switching off their machines. Miners leaving the community en masse would drastically scale back the community’s velocity and depart it extremely susceptible to assaults.

These claims are extremely hypothetical and equally unlikely. The safety of the Bitcoin community has remained sturdy since its inception over a decade in the past. None of the main occasions the community has skilled have to this point managed to make a crack in its safety basis.

In 2017, the community noticed one among its first main congestion points as Bitcoin made the run towards $20,000. Transaction fees spiked to their all-time excessive as an enormous sell-off was happening. Once a correction started, transaction fees started to drop significantly, leaving many to wonder if such a sudden drop in miner income may influence the community.

Since 2017, the Bitcoin community has settled trillions of {dollars} price of transactions with only a fraction of the fees. Throughout 2022, miner fees have remained comparatively constant. As the Lightning Network and SegWit turn out to be extra broadly used, congestion will turn out to be an excellent rarer prevalence.

bitcoin transaction fees
Total transaction fees on the Bitcoin community from 2010 to 2022 (Source: Glassnode)

Those involved about the safety of Bitcoin consider that it’s solely a matter of time earlier than it experiences an assault.

However, any sort of assault on the Bitcoin community would unquestionably result in a major spike in fees in the mempool. Users would start competing for the subsequent block with increased and better fees, making it costlier for the attackers to take management of the community.

This is clear in the large spike that occurred throughout the Terra (LUNA) collapse in May this yr. The complete quantity of transaction fees ready in the mempool elevated by over tenfold as customers started racing to promote their Bitcoin earlier than it dropped too low. Those keen to pay increased fees noticed their transactions processed and losses curbed, whereas these whose transactions obtained caught in the mempool had been pressured to attend for the congestion to clear.

bitcoin transaction fees mempool
Total quantity of Bitcoin fees in the mempool from November 2021 to September 2022 (Source: Glassnode)

This is a testomony to the safety of the community. Transaction fees are the lifeblood of the community that retains it working and the protection mechanism that retains it safe even in occasions of excessive volatility.

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