About transaction fees. - page 2. | Bitcointalksearch.org

exabb

newbie

Activity: 8

Merit: 0

Quote from: pooya87 on March 14, 2017, 04:04:32 AM

3) how full is the memory pool! [this one is new and hopefully temporary]
since blocks are full and only a limited number of transactions can be included in one block, obviously some transactions won't "fit in" so miners pick whoever pays a higher fee and that is why fees are rising now.

How do miners pick the transactions. Is it by actually looking at it on a computer and clicking yes or no, or is it done automatically by an algorithm

Regards
John

pooya87

legendary

Activity: 3472

Merit: 10611

transaction fees will be calculated based on the following factors:
1) size of your transaction in bytes.
if you have lots of inputs (meaning you have received a lot of payments in one address) you will end up having a big transaction size when spending it and pay more fees.

2) block reward and mining cost and price [his is an argument for a very far future.]
one of the reason for transaction fees is to compensate for mining cost. which means when block reward goes down after a couple of more halvings miners can only earn money by receiving the transaction fees.
also amount of fees is set based on price. for example when price was $1 fees were 0.001-0.01BTC and when it is $100,000 it obviously goes down to math the price.

3) how full is the memory pool! [this one is new and hopefully temporary]
since blocks are full and only a limited number of transactions can be included in one block, obviously some transactions won't "fit in" so miners pick whoever pays a higher fee and that is why fees are rising now.

i hope this answers your question.

crypto serina

newbie

Activity: 19

Merit: 0

How much will transaction fees eventually be?

Topic: About transaction fees. - page 2. (Read 1673 times)