Bitcoin transaction fee, a feature that helped the king of cryptocurrency to build its reputation as we know it today but it is rapidly becoming irrelevant that the Bitcoin fees are so low.
Back in 2013, when the Bitcoin made its way into the mainstream, start-ups that were being built around this new innovative technology were most of the times touted as an innovation-focused on payments.
At that time activity level as quite low so, the transactional fees were practically non-existent due to the huge capacity available.
Many people thought of Bitcoin as the digital gold, as they were not aware that Bitcoin was a store of value until the network gets congested and the fees for transactions bean to increase.
The future of Bitcoin was intensely debated over at that time and the focus of discussion revolved around the size limit of the network’s block and whether Bitcoin should focus on value storage or payments.
Currently, the improvement of Bitcoin such as the Segregated Witness (SegWit) that recorded all-time high with respect to adoption has paved way for Bitcoin to act both as digital gold and a huge improvement over systems such as PayPal.
At the start of 2016, complaints regarding the high transactional fees and congestion in the network of Bitcoin were received by many consumers. But even that could not stop the prices from hitting the record high of about twenty thousand dollars ($20,000) at the end of the year 2017.
At some point, the transaction fee of Bitcoin included in the blocks surpassed the bloc subsidy of 12.5 BTC.
By the end of 2017, there were a lot of speculations surrounding the price of Bitcoin that people are willing to pay twenty to thirty dollars ($20-30) so that their transactions get included in some block. This type of thinking still prevails today.
Data suggest that Bitcoin users seem not to worry about the short term increase in fees of Bitcoin, as this innovative technology is still in the developing phase, with its main focus on becoming mainstream and trusted apolitical store of value.