Bitcoin transaction fee!!?? - page 2.

Hannahanto

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Quote from: Greenkarki on February 27, 2018, 10:22:15 AM

Quote from: Fazlurkhan.kz on February 20, 2018, 04:17:20 AM

I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

Two main reasons. One the value of bitcoin has come down. The second one, Usage of segwit addresses. Segwit addresses do not consumes less transaction fees. I use Electrum wallet. Checked the settings, yes we can set the number of blocks needed for transaction and the fees varies. The maximum fees used is less than two dollars. Earlier I used to spend more than 15 dollars for a simple transaction. Happy at Segwit.

Had to spend more than .001 btc for a single trasaction last month. Segwit minimized the cost. The more the blocks are used, the charge becomes lower and the less the blocks are used, the price becomes bit high not exceeding .0001 btc. Every destop / online wallet is aimed to have a less trasaction fee by upgrading into Segwit. Electrum wallet trasaction fees are yes normal.

Greenkarki

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Quote from: Fazlurkhan.kz on February 20, 2018, 04:17:20 AM

I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

Two main reasons. One the value of bitcoin has come down. The second one, Usage of segwit addresses. Segwit addresses do not consumes less transaction fees. I use Electrum wallet. Checked the settings, yes we can set the number of blocks needed for transaction and the fees varies. The maximum fees used is less than two dollars. Earlier I used to spend more than 15 dollars for a simple transaction. Happy at Segwit.

teddy5145

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Quote from: Felix$$ on February 23, 2018, 06:29:56 PM

So, where the fee is the lowest?

If you use Desktop wallet you should be able to set your own fee, with current mempool being empty you can send a transaction with 0.5$ fee and it will be confirmed in just a few blocks

I suggest to move your coins into Segwit enabled address to further cheapen the TX Fee when mempool are being filled again.

Quote from: bob123 on February 23, 2018, 09:28:35 AM

Quote from: federicocrespi on February 21, 2018, 02:25:09 PM

The amount of a fee isn't affected by the price of bitcoin.

Depends on how you measure the fee.
With BTC at 10k $ a fee of 0,0001 btc is about 1$.
Considering same amount of TX's, etc.. this would correspond to a 10$ fee with BTC at 100k$.
The fee - in satoshi - isn't affected by the price of BTC, thats right. But the dollar value of the fee is.

Then again, if we're dealing with Bitcoins we shouldn't think about the dollar price unless we are sending it to an exchange to be traded to fiat.
That's one of the reasons why Theymos didn't drop the price to become Donator or VIP, because we're dealing with bitcoins (and also it's not fair for those who already bought it few years back).

Sony.UK

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Quote from: Felix$$ on February 23, 2018, 06:29:56 PM

So, where the fee is the lowest?

Electrum wallet charges low fees. It depends on the blocks you choose. The more the blocks are the more the transaction fees are low, the low the blocks are, the transaction fees are bit higher. But the highest fee is less than 0.00015 bitcoin. There are other wallets supporting Segwit. All segwit supporting wallets do charge very little. The current price value would be another reason for the low transaction fees.

Felix$$

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So, where the fee is the lowest?

jvdp

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Quote from: Fazlurkhan.kz on February 20, 2018, 04:17:20 AM

I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

This is because of mempool becomes empty from the past few weeks. When there is Segregated witness has been added most of the wallet most of the transaction has consumes less fees and transaction speed has been also has been increased.
I have seen that all the online wallet has been reduced their fees to 0.00002 or .00001 btc per transaction.
If we calculate the complete history of bitcoin when calculate on btc alone. This time is most cheap transaction fees we are seeing.

bob123

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Quote from: federicocrespi on February 21, 2018, 02:25:09 PM

The amount of a fee isn't affected by the price of bitcoin.

Depends on how you measure the fee.
With BTC at 10k $ a fee of 0,0001 btc is about 1$.
Considering same amount of TX's, etc.. this would correspond to a 10$ fee with BTC at 100k$.
The fee - in satoshi - isn't affected by the price of BTC, thats right. But the dollar value of the fee is.

Quote from: kyliebarker on February 23, 2018, 05:03:44 AM

Bitcoin transaction fee is not fixed as it is changed platform to platform. Some platform charge high trading fees some charge low...

Transaction fees (Network fee for the miner) is not the same as a withdrawal fee from exchanges/etc...
The withdrawal fee covers more than just the simple network fee.
Quite a few costs are associated with withdrawals (e.g. transfers from hot-> cold wallet, support costs, security audit costs, ... + network fee)

kyliebarker

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Bitcoin transaction fee is not fixed as it is changed platform to platform. Some platform charge high trading fees some charge low...

BTCBTCBTCBTCBTC

dangphananh

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Bitcoin will probably have a new bottom if the amount of bitcoin is reduced too much so the fees increase as a series of transactions occur and that is a disadvantage for us.

federicocrespi

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The amount of a fee isn't affected by the price of bitcoin. The fees raise whenever there is a hight interest in validating transactions. If there is a long list of people waiting for the transactions to be registered, the price of the fees goes up....

J_CCreate

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Quote from: Thirdspace on February 20, 2018, 08:45:41 PM

Quote from: Fazlurkhan.kz on February 20, 2018, 04:17:20 AM

I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

"I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low?"
indirectly: bitcoin price dropped (some say crashed) and still recovering
this leads to increase of HODLer and decrease of number transactions generated by users
and more users are using segwit addresses (less tx size) also increase the number transactions that can be included in a block

directly: because the reason above, there are less (decrease in numbers and sizes) unconfirmed transactions in the mempool
and there are no significant competition to get them confirmed immediately
so less unconf tx, less competition, leads to less minimum tx fee rate per kB

Thank you for the explanation. I didn`t know about mempool. In december the fees were crazy.

Thirdspace

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Quote from: Fazlurkhan.kz on February 20, 2018, 04:17:20 AM

I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

"I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low?"
indirectly: bitcoin price dropped (some say crashed) and still recovering
this leads to increase of HODLer and decrease of number transactions generated by users
and more users are using segwit addresses (less tx size) also increase the number transactions that can be included in a block

directly: because the reason above, there are less (decrease in numbers and sizes) unconfirmed transactions in the mempool
and there are no significant competition to get them confirmed immediately
so less unconf tx, less competition, leads to less minimum tx fee rate per kB

buwaytress

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There was a mild spike a few days ago taking mempool back above 12k but yeah, it's been at its lowest levels for months, I believe partially due to Bitcoin price being really low, so people have been holding on to their coins more than ever, with the bulk of sell offs already happening when it was on the downwards spiral from 10k. Now that it's rising above 10k, almost a week now and holding pretty strong, expect transaction volumes to pick up again... and mempool to rise consequently.

Quote from: lizardbtc on February 20, 2018, 04:25:48 AM

Fee is based on the amount of inputs and outputs transaction has. The more inputs and outputs the higher fee is required because it requires more work for miners.

As others explain, fees are a direct result of the size of transactions... the actual data they contain. But they pick higher fees because miners can include only so much data in each block they mine, so effectively, they want to include txs that have higher fees per byte of data they represent, expressed as satoshi per byte. The latest upgrades for Bitcoin have focused on making this data more efficient, so txs are getting leaner. If you're not using these upgrades (SegWit being the most significant), then you're not taking advantage of more effective fees.

ranochigo

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Quote from: lizardbtc on February 20, 2018, 04:25:48 AM

The more inputs and outputs the higher fee is required because it requires more work for miners.

No. There's no difference between a 1MB transaction and 1KB transaction to the miner. [Or in terms of block weight]

Quote from: lizardbtc on February 20, 2018, 04:25:48 AM

Although SegWit might play some role in this as well. Many service providers started to accept SegWit, which go activated in summer of 2017 but was not used by many and still not all wallets, merchants, services don't support it.

Seems like the Segwit adoption remains somewhat constant throughout the months. Segwit is likely not the main reason for lower fees, unless you use Segwit too.

lizardbtc

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Fee is based on the amount of inputs and outputs transaction has. The more inputs and outputs the higher fee is required because it requires more work for miners.

Answer to your question is yes. Because of transaction traffic droping we see now that transactions are cheaper. Because it started in like December when number of transactions was at ATH, time needed to pass in order for memory pool to get cleaned how to say.

Although SegWit might play some role in this as well. Many service providers started to accept SegWit, which go activated in summer of 2017 but was not used by many and still not all wallets, merchants, services don't support it.

ranochigo

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Quote from: Fazlurkhan.kz on February 20, 2018, 04:17:20 AM

I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

The only thing that affects the transaction fee is the amount of unconfirmed transactions and the willingness of miners to include your transaction. The fee market works in a way such that those that pays the highest fees/size will most likely be one of the top to confirm. If the number of unconfirmed transactions or transactions that pays high fees is low, then you could send your transaction with a lower fee and expect it to be confirmed in a reasonable period of time. Of course, miners can choose whichever transactions they want to include.

The number of inputs/outputs generally determine the size and hence the total fee. The amount does not matter.

Fazlurkhan.kz

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I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!

Topic: Bitcoin transaction fee!!?? - page 2. (Read 569 times)