Bitcoin is the Ideal Option for Everyday Payments
Date: 2024-07-12 Author: Henry Casey Categories: CRYPTO PAYMENTS
CryptoQuant founder Ki Yong Joo said Bitcoin (BTC) has become more cost-effective for peer-to-peer (P2P) payments compared to Ethereum (ETH). Despite the popular belief that transaction fees on the Bitcoin network are always higher, data shows the opposite: since 2021, the median transaction fee on the Bitcoin network has more often than not been lower than that of Ethereum.
Current Transaction Fees
Currently, the median transaction fee for Bitcoin is $0.4, while the same figure for Ethereum is $0.68. This discrepancy highlights Bitcoin's growing appeal for small-scale transactions. Zhu noted that this is especially important in P2P scenarios, where minimizing costs is critical.
In order for cryptocurrency transfers to be economically beneficial for ordinary citizens, the $0.4 fee must be taken into account in the context of the total transaction volume. Zhu noted that transfers between $13 and $40 are ideal because the fee is only a small percentage of the total amount. In developing countries, where fees range from 1-3%, such transfers remain within acceptable limits, making Bitcoin a practical option for everyday payments.
Transaction Volume Analysis
Analysis of daily Bitcoin transaction volume and median values for transfers in the range from $40 to $1000 (excluding data on the RUNES and Ordinals protocols) shows an interesting trend. Since 2023, there has been a noticeable increase in transaction volume coupled with a decrease in median transaction values. This indicates that Bitcoin is increasingly being used for real P2P payments.
These trends are in line with Satoshi Nakamoto's original vision that Bitcoin should be a "peer-to-peer electronic cash system." Ki Yong Joo emphasized that Bitcoin is becoming an increasingly convenient and cost-effective means for everyday payments, which is confirmed by the increase in its use for real P2P transactions.
