In the market of Cryptocurrency, investors are gathering higher rates. These digital assets offer more returns than other traditional assets. For this, the users are choosing digital assets over other assets like land or gold. But, the exchanges charge at least some amount of fees for transferring or dealing with Cryptocurrencies. Bitsoftware360.com is a fantastic option if you’re a beginner and searching for the best crypto platform.
Due to the existence of high transaction charges, many people avert from entering the Crypto market. It cuts down the chances of the Cryptocurrency industry from reaching its full potential. But the major question here arises is whether these transaction charges can be cut down as a whole or not!
High Rising Charges
With the ongoing Bullish trend, the transaction fees of all the exchanges are rising beyond anything! In the case of Ethereum’s network, the fees went so high that it was around 198.638 USD in May. Due to this, it became impossible for many people to trade Crypto here regularly.
This case matches that of Bitcoin’s network. Last year, BTC Blockchain went through the same phase. Its transaction charges rose to around 300.331 USD. And, in the case of PoW protocol, the network faces congestion quite often when demand rises. This leads the miners to focus on the transactions that provide higher fees.
Problems That This Situation Causes
This entire situation of higher fees in exchanges leads to a halt in daily transactions. This situation cuts down the usage of the basic feature of any Blockchain network, which is peer-to-peer transfers. When a simple transfer between two parties consumes a higher amount of fees, they will better not do it. They will find it reasonable to rather leave that network for any transfers.
It is very common to the heavyweights of the Cryptocurrency industry. Also, this summer, Vitalik Buterin who is the co-founder of the Ethereum network made a statement on this. He said that the number of single transaction charges is similar to that of their daily wage. And this is the case for developing economies.
Before this merge, the charges were pretty lower in the Ethereum network. It was around 1-20 USD and this is higher too for many people! Because an average person in Mongolia earns around 16 USD, and in Zambia 4 USD daily. In this case, the Crypto community in these nations can’t trade anymore due to rising fees.
Steps For Reducing The Rise Of Fees
With the advent of the bear market, the aims shifted to operational improvements in the networks. With this, the developers are working towards cutting off the costs as well. If they can achieve this aim, the Cryptocurrency industry will be able to achieve its true potential.
Experts are putting forward some solutions that will help get back lower rates. Some fresh solutions include rollups, where all the transactions are merged to be outside Layer 1. This system will be cheaper and faster as well.
Also, the developers are working on data compression techniques too. With this, the transaction will take place in a lesser space. And, when these are joined with aspects like sharding, the results will be more fruitful.
The trading outlets play an important role as it directly impacts the Cryptocurrency community. If they can facilitate transfers for free, it will uplift the overall consumer experience. There will be more engagement on these platforms and they will be able to transfer without any second thought.
Making Things Turn True
Many platforms are working their parts to make zero fees possible. HitBTC is among the top exchanges that are working to make transactions occur with zero fees. Here, you will get a wallet that is easy to use and intuitive too. This wallet can function both on iOS and Android devices.
On this platform, you can send Cryptocurrency to anyone at zero charges. You will have an account too via which the transfers will be possible. If this system becomes universal, then the entire Cryptocurrency community will face a big positive impact. Everyone will be able to access the benefits of the Crypto industry while saving more.
Conclusion
There is a long discussion or battle against the concept of charging fees for Crypto transfers. If the platforms charge zero-fine on the transfers, the Crypto industry will find it easy to reach its potential.
