Know Why Bitcoin Transaction Cost Comes Down After Every 4 Years

The expert’s most current research suggests that transaction costs decrease every four years. on Thursday, July 14, the price of one Bitcoin transaction dropped to $56.846.

This decrease shows a four-year cycle of network cost reduction.

Predictive Pattern

After its launch in 2009, Bitcoin has now been in use for 13 years. By closely observing its movement throughout the years, researchers have discovered intriguing patterns.

According to observers, the market environment and investor sentiment are the two factors that typically cause these patterns to appear on the network.

Numerous events occur in the environment as a result of a change in one of these variables.

For investors, a few dollars per transaction is not a deal breaker, but for someone who wants to use Bitcoin as payment, which is essentially what Bitcoin was designed for, it is way too expensive.

The fees are likely to improve, which is good news. Unfortunately, it won’t happen anytime soon.

The Lightning Network is a further update made possible by SegWit that should significantly lower costs, although neither the software nor even its specs are currently complete.

Additionally, the SegWit2x plan, which would double the block size of Bitcoin’s network from 1MB to 2MB, is anticipated to upgrade the cryptocurrency once more in November.

Based on information available Transaction expenses decreased by more than 81 percent in July 2022 in terms of cost movement.

This percentage was generated in May 2021 using expensive transaction charges of $300,331.

The drop in online transactions and the ongoing bear market were factors that contributed to this increase in transaction costs.

Then, as regulatory concerns began to affect the market, many crypto investors found it difficult to conduct business.

However, it is clearly evident that the transactional ups and downs occur every four years. According to the statistics, this pattern initially occurred in 2014, then again in 2018, and now again in 2022, demonstrating a 4-year cycle.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing