Bitcoin payments decline as other cryptocurrencies grow - page 3.

NeuroticFish

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Quote from: davis196 on January 17, 2022, 08:13:07 AM

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And now that bitcoin fee is that high, what I noticed is that bitcoin exchange fee is higher than actual bitcoin fee, this make people to think it is high. Even less than $1 I used to make the last bitcoin transaction recently but if exchanges are charging $0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.

I don't think that all crypto trading platforms are misleading the people.Probably some of them.
Crypto exchanges are the same as banks.They want to make money.

Even more, they prefer the money stay on their platform. Also their transaction related code is usually obsolete and poorly configured.
However, I agree to OP about misleading. Most exchanges use such words related to their withdrawal fee that people think that is the network fee (transaction fee). And this makes many newbies get misled that bitcoin transaction fees are high.
While exchanges do use high transaction fees to make sure the money does arrive fast to the recipient, it's not uncommon neither to see them use less fee than the money asked from the user for that, neither pay unreasonably high fee. And of course, they'll say it's the network fee...

davis196

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And now that bitcoin fee is that high, what I noticed is that bitcoin exchange fee is higher than actual bitcoin fee, this make people to think it is high. Even less than $1 I used to make the last bitcoin transaction recently but if exchanges are charging $0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.

I don't think that all crypto trading platforms are misleading the people.Probably some of them.
Crypto exchanges are the same as banks.They want to make money.
They will impose high fees,as long as the customers are OK with paying those high fees.If the fees become too high,the customers will simply choose another service or completely stop using crypto exchange platforms.Nobody is obligated to use their services.
I couldn't care less about Bitpay and what they have to say about Bitcoin usage on their platform.
The majority of the people simply don't want to spend Bitcoin for goods and services.
It's pretty normal that some altcoins and stablecoins are being preferred over Bitcoin for retail payments.

LoyceV

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Quote from: NeuroticFish on January 17, 2022, 07:25:45 AM

Bitcoiners avoid BitPay because of unreasonable requirements for KYC.
Before, bitcoiners used to avoid BitPay because they were favoring BCH and had bigger fees for bitcoin.

This sums it up

I used to use Bitpay, now I don't use Bitpay. That doesn't mean Bitcoin payments declined (I'm still using Bitcoin for payments), it means Bitpay payments declined. Serves them well!

Quote from: _act_ on January 17, 2022, 07:11:11 AM

And now that bitcoin fee is that high, what I noticed is that bitcoin exchange fee is higher than actual bitcoin fee, this make people to think it is high. Even less than $1 I used to make the last bitcoin transaction recently but if exchanges are charging $0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.

Certain websites (like Binance) have their own financial interests to make people accept their made-up tokens over Bitcoin, and people fall for that! If only more people would use their own wallets and hold their own keys, they'd realize how low transaction fees in Bitcoin actually are. I paid (converted to dollars) $0.05 in fees for my last on-chain Bitcoin transaction.

Don't write "$0.0005" bitcoin, that doesn't make sense.

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Oh but of course, if people stop using BitPay, it means they've stopped using Bitcoin altogether now.

Coinspaid claims 2021 was its peak, growing each year in terms of Bitcoin payments processed using it. I guess they're lying.

BTCPayServer has been getting better and better, and merchants who pass through the hurdle of self-learning are saying they like it. But I guess they're lying too.

MisterTango, Coinpayment, Bitkassa are just some I've used in the past, and I know they're still developing new stuff. Would they be doing that if usage was not growing? Or are they part of the lie?

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Quote from: _act_ on January 17, 2022, 07:11:11 AM

Hope this will not affect bitcoin adoption if people that are using it for payment is decreasing?
On the other side, I am thinking bitcoin is not just a coin that can be used for payment, it can be used for asset too.

Those who want to understand have long realized that more and more people are pushing the idea of Bitcoin as a store of value/digital gold rather than currency. When I say more and more people, I mean primarily influential ones like Mr. Mars (EM) who bought some 40 000 BTC, but at the same time thinks that same BTC is not appropriate to use as a currency. People are following the examples of their idols, and what that will mean for Bitcoin, time will tell.

Quote from: _act_ on January 17, 2022, 07:11:11 AM

And now that bitcoin fee is that high, what I noticed is that bitcoin exchange fee is higher than actual bitcoin fee, this make people to think it is high. Even less than $1 I used to make the last bitcoin transaction recently but if exchanges are charging $0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.

It's called business and market economy, people pay for the service very expensively, and at the same time complain that banks are expensive - paradoxically custodial crypto services are far more expensive than banks. Of course, it's not just about making money that way, but also keeping liquidity of crypto exchanges that would be far less if their fee was below $5, which would be quite realistic.

NeuroticFish

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Quote from: _act_ on January 17, 2022, 07:11:11 AM

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According to BitPay

Bitcoiners avoid BitPay because of unreasonable requirements for KYC.
Before, bitcoiners used to avoid BitPay because they were favoring BCH and had bigger fees for bitcoin.

All in all, the fact BitPay business doesn't go so great as bitcoin payment processor doesn't mean at all that bitcoin payments would be in a decline.

Quote from: _act_ on January 17, 2022, 07:11:11 AM

And now that bitcoin fee is that high, what I noticed is that bitcoin exchange fee is higher than actual bitcoin fee, this make people to think it is high.

If one uses custodian wallet, he pays whatever the custodian asks and - especially in case of exchanges - the withdrawal fee is big and unrelated to network fee.
I've made transaction 2 days ago and iirc the fee was under 10 cents. Now it's 5-6 times bigger if you're in a hurry, but that's still way under 1$.
Bitcoin transactions are not expensive nowadays. The reality is different than what various "friends" advertise.

And there's always LN for faster and cheaper payments.

Quote from: _act_ on January 17, 2022, 07:11:11 AM

The reason for the high fee is because of centralized sites like centralized wallets and exchanges. To use low fee, you can use noncustododial wallet.

That's correct. Also for smaller fees use bc1 addresses. And also the (legit) non-custodial wallets are usually better for your funds' safety (just you have to learn yourself to do everything correct).

_act_

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According to the news, it is said that bitcoin payment of users that use BitPay has declined from 92% in 2020 to 65% in 2021.

https://wealthybot.io/bitcoin-payments-decline-as-other-cryptocurrencies-grow/

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According to BitPay, Bitcoin’s (BTC) usage at businesses that use its payment system fell last year to about 65% of processed transactions, down from 92% in 2020. Along with this change, Ether (ETH) represented 15% of all transactions, whereas other currencies such as Litecoin (LTC) and Dash have increased their portion.

Businesses have started using stablecoins more frequently for cross-border payments since November when crypto values had been depreciating.

Hope this will not affect bitcoin adoption if people that are using it for payment is decreasing?

On the other side, I am thinking bitcoin is not just a coin that can be used for payment, it can be used for asset too.

And now that bitcoin fee is that high, what I noticed is that bitcoin exchange fee is higher than actual bitcoin fee, this make people to think it is high. Even less than $1 I used to make the last bitcoin transaction recently but if exchanges are charging 0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.

People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.

The reason for the high fee is because of centralized sites like centralized wallets and exchanges. To use low fee, you can use noncustododial wallet.

Topic: Bitcoin payments decline as other cryptocurrencies grow - page 3. (Read 497 times)