ALBAWABA- In crypto this week, we've seen a series of developments that highlight the ongoing challenges and opportunities in the world of cryptocurrencies. From the surge in Bitcoin transaction fees driven by the memecoin frenzy, to Argentina's central bank stopping cryptocurrency transactions on payment apps, let's check out this week's highlights.
Argentina's Central Bank Puts a Stop to Cryptocurrency Transactions on Payment Apps
Argentina's central bank has recently banned payment providers from offering crypto transactions in a move aimed at reducing the country's payment-system exposure to digital assets. Since cryptocurrencies are not regulated in Argentina, this ban applies to all coins and tokens. As a result, Argentina's fintech chamber has urged the government to reconsider this decision, citing its potential negative impact on the country's fintech industry. The move has sparked debate and raised concerns among the crypto community in Argentina, and it remains to be seen how this ban will affect the use of cryptocurrencies in the country.
Bitcoin Transaction Fees Surge to Two-Year Highs Due to Memecoin Frenzy
Bitcoin's transaction fees have hit their highest level in two years due to the ongoing trading frenzy of memecoin like Pepe. According to recent reports, on May 3, Bitcoin's blockchain registered a total of $3.5 million in fees paid, a 400% jump from late April. The BRC-20 token standard, popularized by memecoin, has become the latest trend in the crypto ecosystem, with over 8,500 different tokens minted using the standard. As a result, gas fees on the Ethereum blockchain have also surged to new multi-month highs.
Binance Suspends Bitcoin Withdrawals as Network Becomes Overwhelmed
Binance, a popular cryptocurrency exchange, recently suspended Bitcoin withdrawals due to an alleged overflow of transactions on the Bitcoin network.
$BTC withdrawals are now resumed on #Binance.— Binance (@binance) May 7, 2023
Thank you for your patience and we apologize for any inconvenience.
As of May 7, the Bitcoin mempool, which serves as the "waiting area" for incoming transactions, was clogged with over 400,000 transactions waiting to be processed. This backlog of unconfirmed transactions has caused delays and increased transaction fees, making it more difficult for users to send and receive Bitcoin. The situation has raised concerns among users and industry experts, highlighting the need for scaling solutions to address Bitcoin's scalability issues.
Report Reveals Bitcoin Miners Earned $50B from BTC Rewards and Fees since 2010
Despite the ongoing debate about miner costs and vulnerability to Bitcoin price dips, a recent report by on-chain analytics firm Glassnode suggests that miners have made billions in fees and block reward subsidies since 2010. In fact, miners' total all-time income is almost 40% higher than their estimated costs, coming in at $50.2 billion versus $36.6 billion, respectively. These figures highlight the profitability of mining in the long term, and suggest that miners are firmly in the black.