How can you reduce your bitcoin transaction fees?

The number of daily Bitcoin payments reaches a new all-time high — while the MemPool remains surprisingly quiet. The reason for this is the increasingly efficient use of space on the blockchain through batching.

Despite its ever-stronger status as digital gold, Bitcoin remains first and foremost a payment system. And a payment system can be judged by how many payments it processes. Accordingly, it fits well with the all-time high of the price that the number of payments has also reached a new all-time high.

However, you have to search for a while to find this all-time high in the charts. Suppose you look at the number of daily transactions, for example, on blockchain.com. In that case, you will encounter disillusionment: With 401,000 daily transactions, there was a small peak on January 7, but the value is still a decent distance away from previous records, such as on May 2, 2019, with more than 450,000 transactions.

Why has bitcoin nevertheless reached a new record in daily payments?

Anatomy of a transaction

To understand this, you need to visualize what a Bitcoin transaction is like. Bank transfers have a sender and a receiver, which technically could be called input and output.