One transaction to bitcoin (BTC) will now cost you incredibly cheap. Fees are at their lowest level over the last year.
According to the news service about the cost of transactions in the bitcoin network, the Commission today reached a record level of 1 Satoshi. Simply put, any transaction today, will be confirmed in about 10 minutes and it’s at the lowest possible fees.
Next block fee: 1.0 sat/byteHour fee: 1.0 sat/byteDay fee: 1.0 sat/byteHalf-week fee: 1.0 sat/byteWeek fee: 1.0 sat/byte….— Bitcoin Core Fee (@CoreFeeHelper) March 25, 2018
Journalists, English-language edition bitcoinist.com decided to check how much it actually will cost one transaction and sent bitcoins for the amount of US $ 10,000 with the help of Edge Wallet that allows you to set the Commission that you are willing to pay. They installed 1 Satoshi per byte, as proposed by the service above. In the end, this transaction cost $ 0.01.
Meanwhile, the average cost of transactions in the Bitcoin network yesterday, according to bitinfocharts.com was 1.23 US dollar, the lowest level since may of 2017.
Less volume – less used
One of the reasons of reduction of fees was a growing practice of batch processing of transactions for large platforms, such as exchange. This also affected the total number of transactions.
In December, when the price of bitcoin hovered around US $ 20,000, the fees rose to a record high, averaging $ 55 per transaction.
High Commission is one of the weaknesses of bitcoin and often serves as an obstacle to new investors.
Segregated Witness (Segwit) is the change in the Protocol designed to solve the problem of scaling of network Bitcoin and was adopted in August 2017. It is designed to optimize the weight of the unit, and this, in turn, reduces transaction fees. In recent months Segwit integrated a number of major cryptocurrency exchanges such as Bitstamp and Coinbase, as it allowed them to reduce the cost of its users.
According segwit.party, the number of transactions with SegWit is constantly growing, and currently stands at 30% to 35% of all transactions.
Obviously, the General Director of the mining company Bitmain was right when he tweeted that transaction using SegWit will “unfairly cheap” for miners, if SegWit be adopted adopted.
Less Commission, more stores?
Many online merchants still avoided working with bitcoin as a payment method due to price volatility and unpredictable and often exorbitant fees.
It seems that bitcoin is on the way to solving this problem. If the problem of high fees (as well as speed of the transaction) will be solved, buying a coffee or pizza with bitcoins may again become viable.