Bitcoin Fees Are Flat (Sort of)
Bitcoin fees don’t need to get larger as transaction size increases. It costs the same to record a transaction whether you’re buying a latte or a Bugatti.
The going rate is about 150 Sathoshis (each BTC contain 100 million Satoshis) per byte, and a median transaction is currently 226 bytes, giving a median fee of 33,900 Satoshis, or at the current price of US$11,417.60, US$3.87. Because transactions costs are negotiated with miners, and a HODLer (owner) of BTC can pay more for a transaction and it will clear and confirm faster, there is volatility. In the last month, median daily fees have fluctuated between $2.84 and $12.89.
Bitcoin has gone up in price, more than tenfold in the past year. This does explain the majority of the rise in transaction costs (see below) when expressed in US$. But not all of it – the median transaction fee was US$0.158 a year ago. And the fact remains that a latte isn’t something you want to pay a four dollar transaction fee on. And that’s a problem for BTC as a medium of transaction. But not the only problem.