# Bitcoin Transaction Fees Hit Record Lows as Network Activity Declines, Reviving Debate Over Its Core Purpose

Bitcoin transaction fees have reached unprecedented lows in recent days, a direct result of diminished activity on the network. This trend has reignited discussions about Bitcoin's true utility and long-term role within the financial ecosystem.

On October 19, reports revealed that Bitcoin’s blockchain explorer, Mempool, recorded an astonishing drop in transaction fees on October 15, with fees hitting as low as 0.1 satoshi per virtual byte (vByte). This represents a dramatic 90% plunge from the prior minimum fee of 1 satoshi per vByte. For context, one satoshi—Bitcoin’s smallest denomination—is equivalent to 0.00000001 BTC.

The sharp decline in transaction fees is closely tied to decreased demand across the Bitcoin network. Within this decentralized ecosystem, miners bundle transaction data into blocks and add them to the blockchain, earning 3.125 BTC per block along with any transaction fees from users.

However, as on-chain activity has slowed in recent months—including Bitcoin-based remittances and non-fungible token (NFT) trading—transaction volumes have dropped significantly, leading to a shortfall in fee revenues for miners. In a bid to bolster network participation and maintain profitability, miners have lowered minimum fee thresholds. With congestion remaining minimal, transactions with even the smallest fees are still being processed without delay.

This decline in network activity and fees has rekindled a longstanding debate about Bitcoin's intended purpose: should it primarily serve as a medium of exchange or as a store of value?

Advocates on one side argue that Bitcoin should return to its roots as a decentralized payment system, enabling fast and inexpensive cross-border transactions. Meanwhile, others contend that Bitcoin has evolved into “digital gold,” functioning more effectively as a store of value than as a day-to-day currency.

At present, the “digital gold” narrative seems to dominate public sentiment. As Bitcoin’s price edges closer to the psychological milestone of $100,000, its use as an investment vehicle or a tool for wealth preservation has far outpaced its adoption for routine transactions. Scott Norris, CEO of mining firm OptiMiner, weighed in on the trend, stating, “Bitcoin has become less about spending and more about holding. It’s akin to digital real estate—its value is tied to scarcity and the expectation of future appreciation.”

However, not everyone agrees with this trajectory. Jack Dorsey, former CEO of X (formerly Twitter), voiced his concerns about Bitcoin’s diminished role as a payment network during an April podcast. Dorsey warned, “If Bitcoin cannot establish itself as a mainstream payment system, it risks losing its relevance in the broader financial space.”

As transaction fees hit rock bottom and network activity remains subdued, Bitcoin faces a critical moment. Whether it reclaims its utility as a payment mechanism or continues its evolution as a high-value digital asset could shape the cryptocurrency’s future and its role in the global financial landscape.