Since last year, transaction fees have been lower than they were in the last bull run. Right now, they’re still cheap, while in the past they sometimes went over $100. What caused this change? Will low fees last, or will they rise again if Bitcoin’s price jumps?
Transaction fees are falling because nowadays most everyday Bitcoin transactions happen through the Bitcoin Lightning There is no major congestion in on-chain transactions..Bitcoin Lightning is steadily growing continuously with more and more users, and it is increasingly used for transferring Bitcoin.
Lightning is not a like shitcoins Layer 2 solution like many people think, and it’s often mistakenly compared to Layer 2 solutions on shitcoins.
Lightningis an addition to Bitcoin that allows you, if you run your own Bitcoin node, to open Lightning channels with anyone as a 2-of-2 smart contract. It’s trustless both parties can close the channel whenever they want. You can send and receive Bitcoin through that channel, and when the channel closes, the final settlement happens on-chain.unfortunately, very few people run their own Bitcoin full nodes, and most use custodial Lightning services, which means they trust third parties to manage their funds instead of having full control themselves. We need to work on raising awareness so that more people run their own Bitcoin nodes and open and control their own Lightning channels.