Bitcoin Minimum Fee Rate Slashed by 90%—Is That a Good Thing?
The debate on Bitcoin's role as a payment method versus a store of value has intensified following a significant reduction in transaction fees. Users can now send Bitcoin for as low as 0.1 satoshi per virtual byte, down from a previous minimum of 1 satoshi/vByte, due to decreased network activity. This reduction indicates a decline in demand for blockspace, leading miners to lower fees to attract more transactions. Miners, primarily industrial operations, earn rewards for processing blocks but face reduced earnings as transaction volumes drop. Some industry figures express concern that Bitcoin's utility is shifting towards being a store of value rather than facilitating transactions. The choice of transaction fee remains with the sender, who can pay more for quicker processing. While some users appreciate the lower fees, others highlight the importance of fees for network security.
