CJ - Bitcoin Specialist
Over the weekend, a sudden spike in Bitcoin transaction fees and unconfirmed transactions sparked concern on Crypto Twitter about a possible Denial of Service (DoS) attack on the network. Despite these fears, some Bitcoin (BTC) analysts and commentators have quickly allayed concerns from their respective followers.
Even the total fees per block temporarily exceeded the block subsidy award of 6.25 BTC on May 7th due to the network's increasing demand. The block subsidy for this proof-of-work mining method is fixed at 6.25 BTC and reduces by half every four years. However, when block space demand spikes, greater transaction costs may happen, pushing total fees per block above the subsidy incentive. For the first time since 2017, fees have now outpaced subsidy rewards due to the recent increase in demand. One block's costs were 6.76 Bitcoin, and block 788695's fees were 6.7 Bitcoin.
The increase in activity and block space demand has been attributed to the rise in Ordinals NFT inscriptions. Analytics provider Glassnode has reported that a record-high 75% of Bitcoin on-chain transactions used Taproot on May 7. However, some on Crypto Twitter speculated that the recent congestion is due to a DoS (denial of service) attack on the Bitcoin network.
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