> For the complete documentation index, see [llms.txt](https://www.digitalnations.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.digitalnations.xyz/web3-overview/the-web3-ecosystem/cryptocurrencies/problems-with-cryptocurrencies/high-fees.md). # High Fees Both Bitcoin and Ethereum suffer from high fees. As of March 2022, the mean transaction fee was $1.56 for BTC and $8.20 for ETH (and these are actually historical lows, as ETH fees averaged $50 to $75 several times in 2021). This makes them impractical for daily use – after all, imagine having to pay $2 to $8 (or even $75) dollars in fees for a cup of coffee! **Average Transaction Fees Bitcoin and Ethereum**

Source: Cryptorank

While this seems like an insurmountable problem, there are several mitigating factors to consider: 1. Unlike traditional finance, fees are independent of the transaction amount (i.e. it costs the same to send $1 or $1 million), so while this may be a problem for daily use, it’s actually much cheaper than standard costs for bank wires and remittances and also cheaper than a credit card for larger purchases 2. Projects like Ethereum are working very hard on lowering fees, and some estimate the transactions may cost less than a penny when the upgrade to ETH 2.0 is finally complete (although that is likely years away) 3. We have recently seen the creation of alternative blockchains – such as Avalanche, Solana, Cardano, Polkadot, Binance Smart Chain and Terra – that offer significantly lower feeds and transaction times. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://www.digitalnations.xyz/web3-overview/the-web3-ecosystem/cryptocurrencies/problems-with-cryptocurrencies/high-fees.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.