Bitcoin Network Congestion and Skyrocketing Fees Caused by Explosion of Inscriptions
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Bitcoin's network is experiencing high congestion and long transaction queues, causing fees to skyrocket.
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The current congestion is largely due to an explosion in "inscriptions", which are messages/data encoded into BTC transactions, popularized by Bitcoin Ordinals.
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Inscriptions are accounting for 50-60% of transactions, providing constant demand and filling up blockspace.
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High fees are concerning as they may compromise Bitcoin's Layer-2 Lightning Network for small transactions.
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Analysts warn congestion and high fees could get worse during a bull market, potentially leading to payment fraud.