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Why have transaction fees gone down so much for Bitcoin?


Emma
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I saw a news story on this and then several people were talking about it in my social circle. Apparently, the transaction fees for Bitcoin dropped by 94% and now cost less than $5. How the heck did this happen? Why did it happen? Is this a bad sign?

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It is all about supply and demand. So as more people are trying to make transactions the demand on the computers goes up which causes the fees to go up since people want their transactions settled in a reasonable amount of time. When transactions on the network go down then there is less demand on the computers but the supply is still there and the cost comes down to match the current demand. 

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