That is the question...
Why are #Bitcoin fees becoming so high? Simply put, "Greed". The given reason is that with more and more transactions requiring processing, fees had to go up to keep up with demand, but think about it for a second. More transactions means more revenue so logically, more transactions means the fee structure should be reduced and not increased.
With Bitcoin becoming more attractive as a digital currency, it was not enough to keep it a level playing field and add transactions to the blockchain in the order they are received accordingly and then process each block as a whole, so mining pools and digital currency exchanges started raising fees to prioritise larger transactions and get those with higher fees processed more quickly, while leaving smaller transactions unconfirmed for months or even "lost" on the blockchain. Mining Bitcoin has become practically impossible for users with a regular home computer. It is almost as difficult to buy Bitcoin in the UK and 99% of all companies who buy/sell Bitcoin require government issued, centralised photo identification to hold an account, so it is not exactly "anonymous". Even as we speak the governments of the world are conducting feasibility studies into how to go about regulating digital currencies to "protect" the people from money laundering and fraud.
How is all this going to revolutionise the world of digital currency? It is simple. All the major companies like Amazon, eBay, and Google will have their own digital coins which they will float on the exchange and create a loyal fan base of supporters who will then affectively be share holders in the company. Users will then be able to earn/buy/sell/trade the digital currency and exchange it for regular money if they choose. This will literally create fortunes from nowhere as holders of the coins will see their "stock" value go up over time. Currency creators will also be able to offer coins as a digital work incentive.
Since the code is open source, anyone can create a digital currency for any reason at all and there is currently no regulation. Check out the Dogecoin (dog coin) #DOGE. The coin creator, a young entrepreneur cloned the source code, tweaked a few parameters and created the coin for "fun" based on on a popular internet meme of a dog. A community of DOGE coin supporters formed, the coin was accepted on a few exchanges and it took off. The DOGE is currently trading at 0.01c has a trading volume of $78.5 million USD and a market cap of $1 billion USD.
However, if you are thinking of buying/selling/trading digital currencies, you will first need to acquire Bitcoin. And in order to buy Bitcoin you will need a government issued photo ID (see the irony)? There is currently no requirement by law to hold either a driving licence or a passport in the UK, and yet, if you do not own either, your Bitcoin activities will be limited to buying Bitcoin on platforms with fees as high as 10% to 25% greater than the actual market price. And since all Bitcoin transactions will be linked to a government issued photo ID all your transactions will be traceable to you.
It is early days yet and it will become regulated to some extent, and that may also be a good thing, as it will allow everyday users to make smaller transactions in a fair and more transparent way. Of course it will also bring a halt to money laundering, illegal gambling rackets and the buying and selling of illegitimate "goods" on the dark web. Which is where Bitcoin was used primarily before it became popular as a trading commodity.
Good luck and great fortune to you if you are thinking of getting into the world of digital currencies!
You may also like to check out Revolut. Send and exchange currencies anywhere in the world "fee-free".
Join me here:
https://revolut.com/r/matthem6b!crypto
Matt Blythe.
I am owner of Inner Vision Press, author of the book "Enlightenment for Beginners", photographer, entrepreneur, blogger, personal development trainer and former Forex trader. You can find out more about my work at :
Inner Vision Press
http://www.innervisionpress.com
Inner Vision Photography
http://www.innervision.org.uk
