Bitcoin Taps into Satoshi's Vision with Smaller Transactions
CryptoQuant founder Ki Young Ju has highlighted an intriguing trend in Bitcoin's on-chain data. The cryptocurrency is shifting towards smaller transactions, aligning with Satoshi Nakamoto's original vision for Bitcoin as everyday money.
Ju compared median transaction fees between Bitcoin and Ethereum over the past decade. Surprisingly, Bitcoin fees have been cheaper than Ethereum's since 2021. Currently, the median fee on Bitcoin is around $0.40, while Ethereum's is about $0.68.
To identify likely peer-to-peer (P2P) payments, Ju focused on transfers between $40 and $1,000. He noted that considering a 1-3% transaction fee rate in developing countries, $13-40 would be the lower limit. Data from 2019 to 2022 showed larger median transaction sizes, but since 2023, transfers have become smaller and more frequent.
Ju believes this shift indicates an increase in real-life P2P payments. It's a far cry from Bitcoin's reputation as just a store of value. The trend suggests that Bitcoin is evolving in line with Satoshi's original vision, becoming a practical payment method for everyday users.