Topic: Bitcoin transaction fees over the last 2 years (Read 1222 times)

Fees increase follow BTC price and it too expensive!!!

Yesterday, I had a chat with one of my friends. He was saying that in 2015, he was paying around BTC0.0001 as transaction fee, and back then the exchange rate was around $200 per coin. That means that he was paying $0.02 per transaction as fee. And the same individual was paying almost $50 per transaction in fee two years later.

As for me, fee question when the first start to look inside of "what btc is"...
And for now, i usually use another crypto for transfer.

The transaction fees still cheap in bitcoin. But in the value pairing to usd it's expensive I think.

I think he means hashrate increased, some miners dropped out as a result, and the block times then lengthened before it could readjust again.

It has been an excellent resource! Will help a lot of people looking for answers about the fees. When the hash rate is increasing between difficulty retargets we see blocks being solved more quickly. Instead of, say, 10 minutes on average we see blocks taking 9 minutes, so this means there's more capacity available to handle transactions. This reduces the pressure on transactions and therefore means that it's much more likely that low or zero fee transactions will get included in blocks by block makers (because they don't have anything better to do with the block space). Keep up the good work!

Hey thanks for this graph!

It's really nice to check the average fee. Seems like the rise of fees is absolutely not scaled on the rise of transactions. So their is still a very long way to go, fees might get a bit higher it won't kill us.

What's impressive though is the number of transactions, I was not aware of the fact that adoption was so strong and led to so many transactions...

Actually price and number of transactions are correlated, but more likely number of transactions follows a price, because people spending Bitcoins more with higher price and when there is price decline people thinks twice before spending Bitcoins.

Anyway are there any real off-chain solutions ready? Because I didnt noticed this as a option when using Bitcoins...

I think the fees will be the most important aspect in mining bitcoins with the years specially with the changes happening and the halving happening and increasing with time leading to the fees being the main aspect in mining bitcoin.

Interesting..
Are you saying that the rise in BTC transactions on the chart are mainly due to the spam attacks and that actual transactions are decreasing? I surely hope this is not the case..

The price in usd changes a lot more than in bitcoin because the bitcoin price has changed through the years. The fees are somewhere at 0.0001-0.0002 but when the stress test was it reached 0.0003 too.

That's an interesting graphic that you have here. It shows that our fees are quite reasonable compared that some height that happened before.

It doesn't mean double fees. It means that we can go longer without needing to compete to get included in the blocks.

What will happen if the blocks are full is that people will increase their fees to get included over a standard fee transaction. This is what is currently not wanted as it effectively kills any micro transactions.

The 39 BTC per day are the direct fees. The fees and the mining rewards per block are different though. The total mining reward per day depends on the number of blocks mined (currently we're at about 160ish per day rather than the nominal 144 per day) so if we say the number is actually 160 then the total mining reward would be 4039 BTC per day. The majority of the mining reward comes from the block subsidy of 25 BTC per block. Obviously in July this drops to 12.5 BTC per block.

The intent was always that as the block reward continued to halve then a fee market would arise that would compensate the miners with fees instead of compensating them with the block reward. The problem is that after 7+ years the fees per block aren't anywhere close to the block rewards.

In theory if there was a shortage of useful capacity in the blocks then we'd actually see fees increase as users paid more to ensure that their transactions got mined rather than someone else's. The fact that this isn't happening raises questions about how many of the current transactions are really things that their senders actually cared about because even with the stress tests, etc., there doesn't appear to have been a major need for people with transactions that they do care about to have had to increase their fees to get things mined quickly.

well my point stand, at present they essentially earn the same amount of their mining reward, in fee, this is crazy...because basically they doon't need to mine

then something comes in to my head, why on blockchain.info it say "Total Transaction Fees" 39 btc is that value per block? i don't think it is per day, too small...

So many spam attacks lately, but it's kinda funny how the average on-chain usage seems to be going down. Would it be safe to assume that bitcoin is receiving less usage today than it did a couple of years ago or is it that nowadays more transactions happen off-chain.

This analysis is very interesting and a strong argument against those who detrate bitcoin protocol. It shows the network can sustain a high demand for usage and even so it can acquire productivity as the technology evolves.

Bigger blocks won't mean bigger fees.

What interest me - 2MB block will be reality soon, right? So how much will fees increase by then? Will they be effectively doubled?
Will this upgrade kill faucet and some services possible now, because of low transaction fees?

The 28-day moving average is the red dashed line and is running at about $8 at the end of the chart, while the 28-day moving average for the number of transactions (just updated the graphic in the article to show that) is running at 200k, so that's $8x200k = $1,600,000. Here's the graph of mining rewards per day (I didn't end up using it when I wrote the article): http://hashingit.com/images/articles/20160203/rewards-per-day-usd.png