Bitcoin transaction fees are lower currently because they inflate the money supply to reward transaction processors. This puts downward pressure on the price.

Bitcoin transaction fees are lower currently because they inflate the money supply to reward transaction processors. This puts downward pressure on the price. Once the inflation is cut off, its not clear what will happen with the fees. If the hashing power stays constants or decreases while the user-base increases, then low fees might still be feasible, but its unlikely to pan out this way. Speaking from a technical perspective only, there is no way that Bitcoin can process transactions at a lower cost then a centralized method. A distributed log backed by proof of work is necessarily more expensive than a trusted, central server. Most claims of cost reduction come from the elimination of features, such as chargebacks, which will then be implemented by third party, resulting in unbalanced comparisons. Supporters also point to smart contracts as cost-reducer, but the surface area where smart contracts can be made to work without human intervention is low, and I doubt many of these hypothetical cost reductions will be realized.