Bitcoin Transaction Cost Plummets After Every 4 Years, Is there A Reason?

Bitcoin emerged in 2009, making it a total of 13 years of operations. In all these years, experts have identified interesting patterns from watching its movement closely. Observers suggest that two factors usually evoke these patterns on the network, market conditions and investor sentiment. A change in either of these factors causes many events to unfold in the ecosystem. The recent observation by these experts points towards a transaction cost reduction every four years. For example, the cost for one Bitcoin transaction was reduced to $56.846 on Thursday, July 14. This reduction indicates a four-year cycle of cost reduction on the network. Related Reading | TA: Ethereum Outpaces Bitcoin, Why ETH Could Rise To $1,500 Initially, the cost of BTC transactions was usually unpredictable because it is derived using the number of transactions to divide the miner’s revenue. But now, the recent Blockchain.com data seem to have proven a more satisfying pattern for crypto enthusiasts. Bitcoin Data Shows A Predictive Pattern According to available data on cost movement, July 2022 saw a drop in transaction cost by more than 81%. This percentage was derived using May 2021 high transaction costs of $300.331. The factors leading to such a spike in transaction costs was the reduction in on-chain transaction and a prolonged bear market. Then, many crypto investors struggled to operate amid regulatory challenges permeating the indust...