Bitrabo Editorial
The recent data on the Bitcoin network indicates that Satoshi’s original vision is thriving, with a shift towards smaller transactions taking place.
Increasing Trend in Bitcoin P2P Payments
In a recent article on X, Ki Young Ju, the founder, and CEO of CryptoQuant, discusses a noticeable shift in Bitcoin transactions towards what could be classified as peer-to-peer (P2P) payments.
Ju first highlights the changing trend in transaction fees on the Bitcoin network. Transaction fees are the costs that users must pay for their transactions to be validated on the blockchain network.
He shares a chart comparing the median transaction fees on the Bitcoin and Ethereum networks over the past decade.
The graph illustrates that prior to 2021, Bitcoin’s median transaction fees were higher than Ethereum’s, but since then, Bitcoin’s fees have generally been lower than Ethereum’s. Ju points out,
“Contrary to the common belief that Bitcoin transaction fees are always higher than Ethereum’s, Bitcoin fees have been cheaper than Ethereum’s for most of the time since 2021.”
The median fee for Bitcoin is approximately $0.40, while Ethereum’s is around $0.68. Users tend to use Bitcoin for transactions big enough to justify these fees.
To identify transactions resembling P2P payments on the network, Ju focuses on transactions ranging from $40 to $1,000.
He presents a graph showing the relationship between daily median transaction value and transaction count for different periods.
The data excludes transactions related to specific protocols and focuses on real P2P transactions. The graph indicates that the transactions have become smaller since 2023, with an increase in transaction volume, suggesting more P2P payments are occurring.
This shift signifies that Bitcoin is aligning more with Satoshi’s vision of a peer-to-peer electronic cash system.
Bitcoin Price Movement
Despite ongoing price struggles, Bitcoin remains around the $57,800 mark.