Bitcoin Transitions from Store-of-Value to Everyday Money

CryptoQuant founder Ki Young Ju has highlighted a significant trend in Bitcoin's on-chain data. The shift towards smaller transactions aligns with Satoshi Nakamoto's original vision for the cryptocurrency.

Nakamoto wanted Bitcoin to be an everyday money, rather than just a store of value. Recent data suggests this idea is playing out well for Bitcoin.

Ju examined transaction fees on the Bitcoin network and compared them to Ethereum's. He found that since 2021, Bitcoin's median transaction fees have been cheaper than Ethereum's.

The current median fee on Bitcoin is around $0.40, while Ethereum's is about $0.68. Ju focused on transfers between $40 and $1,000 to identify likely peer-to-peer (P2P) payments.

Data from 2019 to 2022 showed larger median transaction sizes. However, since 2023, transfers have become smaller and more frequent.