Paper Number
ICIS2025-2765
Paper Type
Complete
Abstract
As one of the most mature applications of blockchain, cryptocurrencies have exerted a significant impact on the global financial system. However, the fluctuations in transaction fees and transaction price have raised concerns about the stability of cryptocurrencies. Meanwhile, the rise in prices may offset the decline in block rewards, while affecting users' motivation to set transaction fees. Nevertheless, this issue has received little attention in existing literature. We taking Bitcoin as an example, empirically examine the impact of prices on transaction fees. We find that prices have a significant positive direct impact on transaction fees. At the same time, prices can further positively affect transaction fees by increasing the median waiting time. The degree of price fluctuation has, on the contrary, weakened the positive direct impact. This work helps to deepen the understanding of the transmission path between prices and fees in cryptocurrency.
Recommended Citation
Mengyuan, Wang and Chen, Ya, "How cryptocurrency prices affect transaction fees: Bitcoin as an example" (2025). ICIS 2025 Proceedings. 10.
https://aisel.aisnet.org/icis2025/blockchain/blockchain/10
How cryptocurrency prices affect transaction fees: Bitcoin as an example
As one of the most mature applications of blockchain, cryptocurrencies have exerted a significant impact on the global financial system. However, the fluctuations in transaction fees and transaction price have raised concerns about the stability of cryptocurrencies. Meanwhile, the rise in prices may offset the decline in block rewards, while affecting users' motivation to set transaction fees. Nevertheless, this issue has received little attention in existing literature. We taking Bitcoin as an example, empirically examine the impact of prices on transaction fees. We find that prices have a significant positive direct impact on transaction fees. At the same time, prices can further positively affect transaction fees by increasing the median waiting time. The degree of price fluctuation has, on the contrary, weakened the positive direct impact. This work helps to deepen the understanding of the transmission path between prices and fees in cryptocurrency.
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Comments
10-Blockchain