- A cycle has been noticed as the BTC’s per transaction cost is reducing drastically to $56.846.
- To be precise, the per transaction costs fall periodically, every four years.
- One rule of the market is: History repeats itself.
The Periodic Pattern
Looking carefully into the BTC system, we observe a very interesting pattern executed by market behaviors and investor emotions. A cycle has been noticed as the BTC’s per transaction cost is reducing drastically to $56.846. It shows that the per transaction costs fall periodically, every four years, to be precise. The question arises: How to calculate this cost per Bitcoin transaction? To do that, divide miners’ revenue by the number of transactions. This does not imply any predictive trend at all. But it turns out that a pattern does emerge, that too, a very interesting one.
This metric has an all-time high of around $300,331. In July 2022, it dropped around 81%. This got multiplied by this crypto bear market and the loss in the number of transactions. This is done because many regulations have been announced on the investors. Anyways, this surging and crashing cost per transaction is clearly visible every four years. First, it was visible in 2009. Then, it occurred three times: 2014, 2018, and 2022.
History Repeats Itself
One rule of the market is: History repeats itself. And if this is true, the cost per transaction is going to cross the current all-time high, that too, by 2026. After this, there will be a slight downtrend of around $50. Not just the investors but miners got hit by the bear market too. The average mining income has significantly reduced this year. July 2022 marked the lowest bitcoin mining income in the last two years.
Within this bear market, Bitcoin miners cannot make any profit. This is also due to the increased operating costs of bitcoin mining. Anyways, this issue is getting solved by the falling graphic cards market.
Source: https://www.thecoinrepublic.com/2022/07/20/an-interesting-pattern-in-bitcoin-per-transaction-cost/