Price is not the matter. It’s about price in sat/vB ratio.
If you transaction will cost 250.000 sats (no matter the price) because of how scarce the block space is and you will have smaller utxo… you could effectivly burn all of that utxos kust to pay feed.
Transcation is about optimization.
TX consisting of one UTXO would be significantly smaller than one where you have to get three or more inputs together in order to spend desired ammount.
So it’s not about the price of #Bitcoin.
trying to really understand here (a me-issue, im sure you're saying rational things, just not clicking for me yet)..
before my next attempt understanding your reply this needs to be answered for me to make sense of it, i feel: what factors affect the blockspace and its effect on fees? is it just the amount of people using bitcoin at the exact same time (ignoring timezones)?
Yes. But actually it’s not that simple.
Let’s say that basic transaction consisting of one UTXO can span around 180 . Circa, as it matters if you use “older” or “newer” type of adress and such.
But if you need more inputs in that transaction, your transaction can bloat maybe up to 250 bytes or even more.
And then your transaction fee is basically this number * current fee to get into block.
Blockspace is actually very scarce so yes, from simpliest point of view the price of that space should follow the current demand for it in any given moment but it’s not the case all the time. Sometimes you need to do a transaction but you don’t mind to wait so you try to pay less than it’s current price.
Or, the exact opposite. You need to make sure you’ll end up in another block no matter the cost - then you put your fees way higher than needed so there is a chance almost = 100% you’ll get picked to the next block.
