> 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

Note:  All data in this section updated as of March 30th, 2022

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**

<figure><img src="https://1848510576-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAmJeQPCkTT9u0UZ8OI4U%2Fuploads%2FXcWrnzwnyOSU7SF8zQrW%2F25.webp?alt=media&amp;token=db37e632-ddd9-4a43-a6f9-62473f584776" alt=""><figcaption><p>Source:  <a href="https://news.cryptorank.io/bitcoin-and-ethereum-average-transaction-fees-decline-by-roughly-90/">Cryptorank</a></p></figcaption></figure>

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.&#x20;