Bitcoin transaction fees hit 3 year lows!
The median bitcoin transaction fee is now at 3 year lows.
According to info provided to us by BitInfoCharts, the median transaction fee for bitcoin is now just $0.02.
That would mark the lowest median transaction fee since October of 2015!
Check this out:
(Source: https://twitter.com/kerooke/status/1081264457274187776)
As you can see, the median transaction fee is the same price it was over 3 years ago, when bitcoin was worth about $270 per coin.
Roughly 93% lower than it is trading for today.
That's great but is bitcoin doing more transactions now?
I am glad you asked!
Yes, yes it is!
Bitcoin is currently doing roughly 250k transactions per day, whereas back then, it was doing about 135k transactions per day.
Almost twice as many transactions as we were doing 3 years ago with the same transaction fee.
That means we now have a higher price, more transactions, yet the same transaction fee.
Why is this happening?
The lower transaction fees are due to some of the scaling solutions that have been and are currently being implemented.
From things like SegWit to the Lightning network, the technology is being improved upon to the point where the fees are continuing to come down while the number of transactions continues to go up.
Back in late 2017 we saw fees soar to record highs, some as high as $35 dollars, as bitcoin was doing 450k transactions per day:
However, that was before we had SegWit widely adopted and Lightning Network usage was almost non existent.
If we were to see those levels of transaction volumes again, fees would not go up nearly as high as they did back then.
In fact, we are currently seeing the largest number of bitcoin transactions since roughly January of 2018, yet fees remain low.
This is all part of bitcoin's evolution and growing up process getting it to the point where it will be a realistic payment option at some point in the future.
Stay informed my friends.
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Thanks.
that is amazing news. things are getting way better for crypto. glad the fees going down. on route to adoption. thanks for sharing
As am I. Hopefully they can figure out how to keep them low even in times of extreme usage.
Revolution (not evolution) will continue to demonstrate the strength of bitcoin in multiple layers of network effects. Store of value and payments are just the tip of the iceberg for the technology although bitcoin will probably remain in these niches as it captures more adoption.
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If it just captures the store of value, that is close to an $8 trillion dollar market in gold alone. If it captures payments as well, even McAfee won't be eating his body parts!