Did Wu Jihan successfully predict that segregated witness would work? Bitcoin transaction fees have hit a new low of "only 1 cent to send $10,000"

Even as Bitcoin prices have been surging, its transaction fees have hit an all-time low.

According to data disclosed by a Bitcoin fee information service on the Twitter platform, Bitcoin transaction fees hit a record low on March 25, local time in the United States, with only 1 satoshi (the smallest unit of Bitcoin) per byte being able to enter the next blockchain. Moreover, the transaction time can be confirmed in ten minutes or less.

Someone used the Edge Wallet wallet for testing and found that the transaction fee for sending $10,000 in Bitcoin was only $0.01.

According to data from bitinfocharts.com, this transaction fee hit an all-time low since May 2017.

Is Segregated Witness (SegWit) working?

Segregated Witness is an expansion solution adopted by Bitcoin since August last year, which aims to optimize blocks and reduce transaction fees. In recent months, major cryptocurrency exchanges including Bitstamp and Coinbase have been optimizing Segregated Witness to handle large transactions and save user funds. According to data from SegWit.party, the volume of Segregated Witness transactions has been growing steadily in recent times and has now reached 30-35% of the total transaction volume.

Coincidentally, as shown in the figure above, Jihan Wu, CEO of mining giant Bitmain, once said on Twitter that if SegWit is adopted, then SegWit transactions will be "unfairly cheap" for miners.

If Bitcoin’s transaction fees were reduced, even as its price and transaction volume increased, Bitcoin could be considered a method of everyday payment. Moreover, if Bitcoin could really solve the two universal problems of high transaction fees and high speed, then paying for coffee or pizza with Bitcoin might really become a reality again.