Bitcoin Transaction Fees at Their Lowest in Over Three Years

Bitcoin Transaction Fees at Their Lowest in Over Three Years

Transaction fees on the Bitcoin network in the opening days of January 2019 have reached their lowest level in over three years, registering a median of $0.02 per transaction, according to new data released by Bitcoin Visuals.

The data, compiled by analyst Kevin Rooke and published in a tweet two days ago, also indicate that current transaction fees are being applied in a context in which Bitcoin volume has doubled in comparison to October 2015, the period in which such transaction fees had last been witnessed.

Nudging Towards Real Adoption?

Commissions applied to transactions in the Bitcoin network represent the fees received by the miners as an incentive to maintain the network. Historically, fees – along with volatility – have been considered too high by most analysts to allow for adoption of Bitcoin as a viable medium for general retail payments.

However, with scalability solutions such as SegWit, launched in 2017 and now accounting for about 40% of all transactions, along with Lightning Network – a second-layer technology launched on top of the existing Bitcoin protocol less than a year ago in a bid to accommodate micro-payments using Bitcoin – the falling trend in fee commissions appears to represent a positive, long-term trend in favour of the utility adoption of Bitcoin as an everyday payments mechanism as opposed to a means as a store of value.