Crypto's utility as a payment tool



  • How do we measure the level of utility that can be derived from using a specific payment method?
    For this example let's suppose that the level of utility a payment method can offer is measured as the relationship between monetary value transacted vs. fees paid.

    If we apply this to bitcoin, we can see how "efficient" it can be under certain scenarios. Minimum fees/transaction are desired.
    For this example I'll set the sat/byte fee as a constant of 193 sats per byte. Amount of money (in monetary value) intended to reach the recipient can be any constant.

    For a (very) standard transaction of 250 bytes, one would spend 0.0004825 BTC.
    At a hypothetical price of $7.000 per BTC, the cost of the transaction would be $3.3775.
    At a hypothetical price of $9.000 per BTC, the cost of the transaction would be $4.3425.
    And so on...

    We see that bitcoin's utility as a payment tool has an inverse correlation with bitcoin's market value.
    If the market price of BTC goes up, fees for transferring the same value with bitcoin become more expensive.

    My question is, can this be fixed, especially in a way that doesn't compromise decentralization and bitcoin's immutability?
    And should it be fixed in your opinion?


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