Quick Takeaways:
- The Bitcoin Core 29.1 update drops default transaction fees by 90%
- Sending Bitcoin is now cheaper especially for smaller payments
- Adoption is still in progress, but this marks a big shift in how fees work
Bitcoin Core Just Made Using Bitcoin Cheaper
If you’ve ever hesitated to send a small amount of Bitcoin because the fee felt too high, you’re definitely not alone. But that’s starting to change thanks to a recent update in Bitcoin’s core software.
The latest version, Bitcoin Core 29.1, lowers the default minimum relay fee from 1 sat/vB to 0.1 sat/vB. That’s a 90% cut, and it means transactions on the Bitcoin network can now be a whole lot cheaper without sacrificing network safety.
So why now? Well, when Bitcoin’s fee rules were originally set, the coin was worth far less than it is today. Now that it’s trading above $114,000, it just doesn’t make sense to have the same high minimum fee.
This change updates the system to reflect Bitcoin’s current reality. As Mempool.Space put it: “0.1 sat/vB is the new 1 sat/vB.” In other words, don’t overpay.
Bitcoin Nodes Are Slowly Catching On
Now, here’s the catch: just because the new default exists doesn’t mean everyone’s using it yet.
Right now, only about 2.3% of Bitcoin nodes are running version 29.1, the one with the lower fee.
That’s roughly 571 nodes out of the tens of thousands that make up the network. But that’s not surprising, Bitcoin is decentralized, so every node operator makes their own call about updates.
Still, there’s a good reason to expect more will switch soon. Over 72% of all Bitcoin nodes run some version of Bitcoin Core, which means this update has the potential to spread widely over time.
Meanwhile, there’s also Bitcoin Knots, a more customizable version of Bitcoin Core. It lets users set their own fee policies, and while it’s based on the same code as Core 29.1, it doesn’t follow the new fee rule unless users turn it on manually.
Curious which version your node is running? Check Bitnodes for live stats.
Lower Fees, Same Bitcoin Security
Whenever fees get lowered, the first question is always: “But is it still safe?” And yes, it is.
The minimum relay fee is there to stop spam and prevent the network from getting overwhelmed.
That’s still important. But as Bitcoin Core developer Gloria Zhao explained, many miners were already including lower-fee transactions in blocks. The problem was that older nodes were ignoring those transactions before they ever reached the miners.
That mismatch was slowing everything down.
By reducing the default fee, more nodes will now relay those transactions, which helps the whole network run more smoothly, especially during low-demand periods. You can read all the technical details in the Bitcoin Core 29.1 release notes.
What does it mean to bitcoin users everyday
So what does this mean for you? If you are using only bitcoins to send or receive payment, you can start notice of low fees, especially if your wallet provider has upgraded to the latest node version.
You won’t need to tinker with anything; your wallet will likely pick up the lower cost automatically.
If you’re running your own node or building on the Bitcoin network, though, this is a good time to upgrade.
Not only will your node relay transactions more efficiently, but you’ll also avoid issues caused by outdated fee settings. And if you’re building apps, payment tools, or anything that relies on Bitcoin’s mempool? You’ll probably notice improvements in how transactions are processed and how quickly blocks get relayed.
Where Bitcoin Transaction Fees Are Headed
This update is a reminder that Bitcoin is still evolving carefully, but steadily. Some people have criticized Bitcoin in the past for higher charges than other blockchains. And while it is sometimes true, this change shows that the network may be favorable until it makes sense.
By bringing down the cost of sending transactions (especially during the quiet time), bitcoin becomes more accessible to everyday users – without leaving those things that make it safe and decentralized.
In the long run, these types of changes make it easier to use bitcoin, more efficient, and more sinks how do people actually use it today.
