Fees for Bitcoin (BTC) transactions have been relatively stable over the last two months, after having been far higher than the cost of a Big Mac in the United States.
This means that sending and receiving Bitcoin across addresses can be more reliably and cheaply accomplished.
On May 2, Bitcoin mining transaction fees surpassed $5.00, reaching a high of $31.14 on May 8 (averaged across all users for each submitted transaction). Finbold gathered this information from BitInfoCharts.
After that, from May 14th to June 9th, the average transaction costs hovered around the $5.00 level. Up to the time of publishing on August 24th, this measure has been below this critical price for nearly two months.
The Big Mac Index, often used for global buying power evaluations, uses the price of a Big Mac in the United States as a proxy for the value of a dollar in other countries. At $5.58, the average price of a Big Mac in the United States is lower than the $5.00 level.
It is possible to get insight into the economic realities of several nations by comparing the price of a well-known commodity that is available in the large majority of these countries. When conducting comparisons, the US Big Mac pricing is often used as the standard, hence nations with cheaper Big Macs have stronger currencies relative to the US.
Financial evaluations of the buying power and affordability of a certain system, product, or service may benefit from the Big Mac Index in general.
As long as Bitcoin transaction costs stay below the cost of a Big Mac, more people throughout the world will be able to afford to utilize the Bitcoin Network. When you get above that point, the system becomes more expensive and less accessible, meaning fewer people can take part.
Also Read: Bitcoin’s price has rebounded to US$26,500, in line with recent increases on Wall Street
