UPDATE: Bitcoin CEO announces 0.75% Transaction Fee Increase

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Crypto markets had a rocky start on Tuesday, October 2022 after announcements from the Bitcoin CEO that Bitcoin Inc was planning on increasing transaction fees by 75 basis points. While most cryptos are still open for trading, Solana has closed the day up 3.15%.

The Bitcoin mogul explained the reasoning behind the unexpected news. He claimed that an increase in transaction fees would incentivize more miners to increase operation and strengthen the network. The Bitcoin CEO hopes that a parabolic move in hash rate could attract new VC investment and partnerships. This comes at a time when prices have been lulling due to Alex Mashinsky still being not in jail.

Those among the “hodler” cohort welcomed the announcement from the CEO. Their coins sit in cold storage, never accruing transaction fees. One long time holder and Reddit user named u/mtgoxftw, who describes himself as not knowing “sh*t about f*ck,” said he’s hoping the fee increase can push Bitcoin to $100k by the end of 2021.

Lastly, some are speculating this was the first move to eventually making fees a percentage of the transaction that were to be burned, similar to how safe moon operates. We reached out to several users of Safemoon for comment, though none responded. A source later informed us that it was because they aren’t able to read.

Only time will tell if the Bitcoin CEO has made the right move, or if he will be forced to reduce transaction fees in the future as part of his mandate to increase transaction volume.