Transaction fees for Bitcoin are now lower than they ever were in the past 7 years. This means Bitcoin might be suitable for use as actual currency. Initially, the cryptocurrency was promoted as being a “peer-to-peer electronic cash system.” The problem was that because of the fact that the network became overloaded, transactions became lower and fees became really high. At the end of 2017 there were even some transactions that had a fee of $60, which is much more than what should be the case if Bitcoin would be used as actual currency.
The big problem with the high fees and slow transactions led to the Bitcoin community being rifted apart. It was because of this that Bitcoin Cash appeared. The main goal of BCH was to overcome transaction and fee problems by modifying how transactions were processed.
At the moment, although transaction fees for the cryptocurrency are erratic, at one point on the 27th of May, they dropped under those seen with BCH. Bitcoin transaction fee fall came as BCH experienced a dramatic price drop, making it lose 50% of its value from the start of May.
Right now we can say that it is possible to pay for services and goods with cryptocurrencies like ETH and BTC through the use of third party applications that will convert the digital currency into fiat currency. This facilitates all transactions.
An example of a platform that manages to do this is Plutus. The platform allows users to pay with the use of ETH and BTC through payment terminals that are NFC-enabled and present all around the world. Danial Dayachopan, Plutus CEO and co-founder, showed that Bitcoin’s popularity made it become a successful speculative investment option. He declared that Bitcoin is more than just unit account like gold. It is an exchange unit, something that gold is not. Plutus basically thinks that Bitcoin is going to go over $30,000 by the end of 2018 and over $60,000 by the end of 2019.
Price volatility is great for the investors but it is not something of interest for average users. It is because of this volatility that so many believe Bitcoin is still far away from properly being adopted as a useful currency. The truth is that Bitcoin can only become a regular currency in the event that value stabilizes and when transaction fees are negligible. If fees keep being as low as they are now or they go down, many financial institutions will start to actually think about using Bitcoin for transactions.
