Lightning network usage should work perfectly for spending $1 worth of bitcoin, the transaction will be very fast and with very low amount of fee not worth more than $0.00005.
With mempool of 10 sat/vbyte on Sundays, with bitcoin at such high price of $56000, the fee will not yet be more than $0.4 (1 input and 1 output)
Note that wallets may not estimate the fee accurately at times, you can also check the fee on mempool, mempool.space is one of the recommended.
Onchain transactions are not for sending small amount of bitcoin, instead, it will be a waste of bitcoin on fee.
Topic: Are small BTC transactions essentially “Wasted”? - page 2. (Read 358 times)
We're pretty much in a bull market so the mempool is mostly always decently congested. When things calm down though, probably expect 1 sat/byte transaction fees to be viable again. Probably wait for that time to come.
On the other hand, though it's can be a slight privacy issue, you can continue accepting bitcoin on that wallet so at the very least wait til it accumulates to the $10-$50 range so sending it out is more worth it.
On the other hand, though it's can be a slight privacy issue, you can continue accepting bitcoin on that wallet so at the very least wait til it accumulates to the $10-$50 range so sending it out is more worth it.
Most people actually don't receive Bitcoins in denominations that small or rather it's just not feasible right now.
It would be good if you could delay spending those small inputs. Instead, you can wait for them to accumulate and spend them all at once so it'll have loads of inputs and only one output. Spending it with a low fee would net you a confirmation sooner or later. During the weekends, the fees usually comes down to about 10satoshis per byte which would be fairly reasonable. I don't think Bitcoin would be affected by such an issue, the fees that you mentioned disincentives people to create transactions with small output as fees will eat into a bulk of it. Smaller transactions would be fine for lightning network however.
It would be good if you could delay spending those small inputs. Instead, you can wait for them to accumulate and spend them all at once so it'll have loads of inputs and only one output. Spending it with a low fee would net you a confirmation sooner or later. During the weekends, the fees usually comes down to about 10satoshis per byte which would be fairly reasonable. I don't think Bitcoin would be affected by such an issue, the fees that you mentioned disincentives people to create transactions with small output as fees will eat into a bulk of it. Smaller transactions would be fine for lightning network however.
If I receive a very small amount of BTC, like $1 worth, is that BTC essentially wasted? Because to my knowledge, to send that BTC I would need to include that transaction as an input, which incurs a transaction fee. One online calculator, I used estimated the cost of an input as $5, which would mean it is not even worth spending the $1 I received?
Seems like this may be a problem as small transactions overtime cause the number of spendable bitcoins to decrease?
Seems like this may be a problem as small transactions overtime cause the number of spendable bitcoins to decrease?
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