Bitcoin is useless or is it? - page 19.

bitjoin

hero member

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Quote from: loiterin9 on May 14, 2017, 03:06:01 AM

With transaction costs rising above $1 the original promise of cheap remittance using Bitcoin is officially dead. Without utility Bitcoin use is limited to speculation only and even further what is there to speculate about?

I would like to debate this and gauge the community's response to Bitcoin experiment.

Im not an expert but from what i've heard even if costs were $10 each it would mean price was sky high and probably likely bitcoin is being moved to settle big transactions. All smaller transactions can happen via services being built on top of the blockchain. Not sure if thats a good idea or what.

stompix

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Blackjack.fun

Quote from: GGBTC.NL on May 14, 2017, 03:16:07 AM

indeed. The low transaction fee's are a lie now. better to buy your pizza with real money or pay more with BTC.

Can anyone tell me for whom those fee's are, and why they are rising?

They are rising because there is a limit on haw many transactions can be inserted in a block.

So in order to have yours there you have to pay more than the others.
And thus fees are rising.

If there would be less transactions there would be no demand for space so you could get away with 0 fees.

Quote from: loiterin9 on May 14, 2017, 03:23:32 AM

The higher the volume of transactions the more effort is required to process,

No it does not.

loiterin9

newbie

Activity: 42

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Quote from: GGBTC.NL on May 14, 2017, 03:16:07 AM

indeed. The low transaction fee's are a lie now. better to buy your pizza with real money or pay more with BTC.

Can anyone tell me for whom those fee's are, and why they are rising?

The fees are being paid to miners to process transactions. The higher the volume of transactions the more effort is required to process, minres are motivated to process transactions that carry a higher fee first. This triggers a cascading effect, if a user what a transaction to be processed sooner he has to pay more.

In the traditional processing model, processing fees go down with volume. Users and acquirers work with a predictable pricing structure. Acquirers compete with each other driving making fees more competitive for merchants. Bitcoin turned this upside down and made users compete with each other. I believe this is not sustainable.

GGBTC.NL

newbie

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indeed. The low transaction fee's are a lie now. better to buy your pizza with real money or pay more with BTC.

Can anyone tell me for whom those fee's are, and why they are rising?

Sr.Urbanist

full member

Activity: 315

Merit: 120

Quote from: loiterin9 on May 14, 2017, 03:06:01 AM

With transaction costs rising above $1 the original promise of cheap remittance using Bitcoin is officially dead. Without utility Bitcoin use is limited to speculation only and even further what is there to speculate about?

I would like to debate this and gauge the community's response to Bitcoin experiment.

I agree. That is why I use the Bitcoin Unlimited node and am diversifying into LTC, DSH and ETC. As soon as the mempool clears, I think we'll drop below the 200 DMA, due to anger *again* over fees/wait times. It's so unnecessary. If we made it 2MB there wouldn't be the mempool.

As a miner though, I do get a small windfall from the higher fees, but it's not much and they're eaten up by sending high fee transactions.

loiterin9

newbie

Activity: 42

Merit: 0

With transaction costs rising above $1 the original promise of cheap remittance using Bitcoin is officially dead. Without utility Bitcoin use is limited to speculation only and even further what is there to speculate about?

I would like to debate this and gauge the community's response to Bitcoin experiment.

Topic: Bitcoin is useless or is it? - page 19. (Read 12826 times)