- 2019 initiated with a fee of USD 0.02 per transaction in the Bitcoin network.
- That figure was not recorded since October 2015.
Bitcoin transaction fees reached their minimum in 3 years
Transaction fees on the Bitcoin network reached its lowest level on January 1, 2019, by registering a median of 0.02 USD per operation. Amounts like this were not recorded since October 2015, according to Visual Bitcoin data.
This figure occurred despite the fact that the volume of Bitcoin operations is currently 75% higher. Analyst Kevin Rooke highlighted in a tweet that on October 13, 2015, the previous date that the rates were located 0.02 dollars, 134,741 transactions were registered, while on January 1 of this year the figure reached 234,576 operations. In his view, the fact that Bitcoin mining is validating more transactions for the same fees represents progress.
It should be recalled that during the frantic growth of the bitcoin price at the end of 2017, transaction fees were shot to more than 65 dollars for an operation. At its highest point, which occurred on December 23, 2017, the median of the commissions per transaction was 33.67 dollars.
In 2017, commissions were paid up to 65 dollars per transaction. Source: Bitcoin Visuals.
The commissions that apply to transactions in the Bitcoin network constitute the fees that miners receive as an incentive to maintain mining. This activity allows to validate the transactions to avoid the double expense and at the same time to keep the Bitcoin network secure. However, too-high commissions make it infeasible to adopt this criptomoneda as a means of payment at the retail level.
The figures reveal that currently moving bitcoins is cheaper than in 2017, a fact that could be explained by the incorporation of scalability solutions such as SegWit. This update, which was launched in August 2017, had reached a 40% adoption one year after its activation. According to Segwit. Space data, on October 10th, 2018 the largest number of Segwit transactions was recorded in the Bitcoin network, at 51.64% of total operations. Currently, the transactional prevalence of Segwit is maintained at around 38%.
Another solution that promises to take the adoption of Bitcoin, is the Red Lightning Network (LN), a second-tier, designed to make instant micropayments of bitcoins, with minimal transaction rates. The LN network, which was launched almost a year ago with just 69 nodes and 135 channels of payment, already has more than 5,000 public nodes and 17,800 payment channels, showing exponential growth.
The development of these technologies poses a favorable scenario for the massing of Bitcoin, beyond speculation with its price.