I found this old post about sending money to multiple addresses here that explains with "Concrete numbers" why individual transactions are more expensive compared to cumulative transactions. For some reason I still dont get it, maybe I am missing something. Lets say I want to send $10 to 10 different people. From my point of view I can either create 10 individual transactions and lets say each transaction will have value of $10 and I will pay $1 fee for each of them which means I will send $100 dollars to people and I will spend $10 for transactions fees. If I just create one transaction with multiple recipients how is that cheaper if the total value transacted will be again 10x$100 == $100 and I will set up the same fee which will be in this case $10. I probably understand that the cumulative transaction will be technically bigger and will be executed faster(since it is going to have bigger priority, bigger value transacted) but when the speed of the transaction is not considered at all, is not that the same result? I sent 10 individual transactions(sending around $10 to 10 different addresses, first I sent the first one, then the second one then the third one etc..) just to test this in the testnet and did also one big one(providing list of addresses and values and sending all at the same time) and they have been all confirmed so I am definitely missing something.
Just to visualize this:
Example batch transaction:
Vladimir 1btc sends 0.8btc to Peter, and 0.1btc as a change to his new address 0.1btc is used as a transaction fee Vladimir has got 0btc in the old address, Vladimir has got 0.1btc in his new address, Peter has got 0.8btc in his address, Vladimir spent 0.1btc on transactions fees.
Example individual transactions:
First Transaction: Vladimir 1btc sends 0.4btc to Peter(considering he wants to send another half in the separate transaction) he has got 0.6btc left, he sents 0.55btc as a change to his new address and use 0.05btc as a transaction fee
Second Transaction: Vladimir 0.55btc(his new deposit address received this after first transaction) sends 0.4btc to Peter, and 0.1btc as a change to his new address(so he has got 0.1btc left as in the batch example) 0.05btc is used as a transaction fee Vladimir has got 0btc in the old address, Vladimir has got 0.1btc in his new address, Peter has got 0.8btc in his address(received 0.4btc and 0.4btc), Vladimir spent 0.1btc on transactions fees(0.05btc + 0.05 btc == 0.1btc).
Vladimir spent 0.1btc for both scenarios, Vladimir has got the same balance in the end for both scenarios and Peter get the same value why is the first scenario cheaper then?