My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
Your worry isn't really a valid worry at all - high transaction fees doesn't mean that bitcoin cannot be transferred. It just meants that small amounts of bitcoins cannot be transferred, but if someone is able to save up for a bigger amount of bitcoin that will still beable to be sent as payment.
However the high transaction fees combined with the high bitcoin prices is definitely causing a problem. I don't think i've eer used any sort of payment processor that charges me $2.5 on a $3 transaction i make. Not even paypal, honestly.
Maybe this is the reason why people decided to pump dogecoin a bit, because doge blockchain was relatively free and the transaction fees are still low as always - 1 doge