Topic: bitcoin transactions costs in the future - page 8. (Read 1786 times)
As others have pointed out, the cost for mining is not only about electricity, but also network, hardware, warehouse, etc. If you feel that the BTC transaction fee is so expensive lately, that's because of "network congestion." You might want to use SegWit wallet to reduce fee, or simply use LN for micro/mini payments. Don't buy a cup of coffee with on-chain BTC transaction.
What is free in this world now? Soon even your breathing should be paid.
Water and other enegy source cost more since it is a daily need of one human being.
It still uses energy and someone needs to maintain it. Better if it would be cheap but never free.
Thanks for sharing though.
Water and other enegy source cost more since it is a daily need of one human being.
It still uses energy and someone needs to maintain it. Better if it would be cheap but never free.
Thanks for sharing though.
Right now, it costs around $3 to send Bitcoins. But as the number of users increase, this can also go up. If you remember, during the peak of the bitcoin bull run in 2017, we had fee ranging from $30 to $50 for a single transaction. The mining pools were making a killing back then. But the strategy backfired, as the users shifted to ETH, LTC and BCH.
number of users does not affect the transaction fees but its the demand or the increase of the price , thats what trully affect the transaction fees . also , not all wallet/exchange have the same fees . some have less inexpensive fee because they use low priority or slower speed processing while others dont like waiting so they use high fees
If the number of users increase, then in all probability the number of transactions can also go up. And then, it depends on the exchange rate was well. The transaction fee may remain the same in terms of BTC. But its value in USD can go up if the prices rise. And I always use wallets where I can set the fee myself. If I think that the default fee is too high, I manually set it to a lower amount.
to build a solar farm requires a huge investment costs as well as maintenance cost. the electricity use in mining using electricity from solar panels will not change any cost. basically this is a business, the miners will not willing if transaction costs are reduced because the investment and maintenance costs are already high. and the use of solar farms can only instaled on places that have high light intensity, so not everyone can use it.
Although in the future I think this activity will be optimized: more powerful hardwares, longer durability, less equipments needed, cheaper costs involved. Consequently, a fee near zero cost is possible.
Another approach would be that even crypto friendly governments could offer this service in a far future. In a way people should pay only for the maintenance costs.
Bitcoin mining in the future won't cause the fees to be near zero because mining equipments will continue to be expensive. We could see the fee go down for a week or month if there's not a lot of transactions made during those time but it'll never stay that way permanently. The miners don't control how much fee does each user want to set in their transactions. Fees will only become free for everyone when Bitcoin transactions are done off chain where there's less resources being used. Another approach would be that even crypto friendly governments could offer this service in a far future. In a way people should pay only for the maintenance costs.
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I'll admit I'm not expert in mining. I know very little about it, in fact. What I'm wondering is what would happen if bitcoin's price reached a level that was so insane that 1 satoshi was something like $5 or even higher. Would that not screw up the entire bitcoin system? There would be no way to send small amounts of bitcoin or very exact amounts, much less pay a fee to the miners. Am I missing something in that hypothetical case other than the fact that 1 satoshi will probably never be worth that much?
I have read about this somewhere (I forgot where). It's mentioned that Satoshi can be divided to smaller units when it reach expensive price for each Satoshi. It can be done through consensus. Theoretically possible but no need for now.I'll admit I'm not expert in mining. I know very little about it, in fact. What I'm wondering is what would happen if bitcoin's price reached a level that was so insane that 1 satoshi was something like $5 or even higher. Would that not screw up the entire bitcoin system? There would be no way to send small amounts of bitcoin or very exact amounts, much less pay a fee to the miners. Am I missing something in that hypothetical case other than the fact that 1 satoshi will probably never be worth that much?
yes you are right when the fees of transaction is very low then it will be more helpful and useful for lots of people to get the extra profit for their mining and the investment definitely a good chance to implement and the possibility of people to increase input field is also there.
I'm sorry, I don't really understand what you are trying to say.
In theory this all seems to logical and could actually work, but you have to keep in mind that bitcoin is unpredictable, and solar panels are not cheap and generating enough power to actually make some profit requires a large amount of investment, an investment that only a small percent of the people that are rich will actually go for it, and since as i said that bitcoin is unpredictable and the price could change at any moment so the overall investment and profit is inconsistent so the return on the project will take a lot of time, talking about 10 or 20 years.
If it's free, miners don't need to send the transaction fee back because senders would not even add transaction fee to the chain. Nothing to return. Is possible to send Bitcoin without fee? I'm not really sure, fee is like a fuel and every car needs fuel to be able to run. Not sure about zero fee but it's absolutely possible to make the transaction fee near zero, unfortunately there is always a fee war. Some people agree to pay more fee to accelerate their transactions or simply ruin the chains, make it very busy so other people will move to other coins. This is the problem, even though the fee is 1 Satoshi, I think we would never do that because our transactions will take forever to be confirmed.
yes you are right when the fees of transaction is very low then it will be more helpful and useful for lots of people to get the extra profit for their mining and the investment definitely a good chance to implement and the possibility of people to increase input field is also there. Right now, it costs around $3 to send Bitcoins. But as the number of users increase, this can also go up. If you remember, during the peak of the bitcoin bull run in 2017, we had fee ranging from $30 to $50 for a single transaction. The mining pools were making a killing back then. But the strategy backfired, as the users shifted to ETH, LTC and BCH.
number of users does not affect the transaction fees but its the demand or the increase of the price , thats what trully affect the transaction fees . also , not all wallet/exchange have the same fees . some have less inexpensive fee because they use low priority or slower speed processing while others dont like waiting so they use high fees
If what you mean is free transactions and zero costs in the block chain, then everything must be free, because even the tools for mining also have an expensive price and it is impossible for everyone to be free because all of them use capital, even for themselves.
Thats impossible to happen . first of all , we need to pay for the miners so that they will process our transaction . secondly , mining hardwares are not free and wont ever be free because they are expensive and what about the shipping cost ? They will just create it and deliever it to your door step freely ? Lol .
If what you mean is free transactions and zero costs in the block chain, then everything must be free, because even the tools for mining also have an expensive price and it is impossible for everyone to be free because all of them use capital, even for themselves.
Right now, it costs around $3 to send Bitcoins. But as the number of users increase, this can also go up. If you remember, during the peak of the bitcoin bull run in 2017, we had fee ranging from $30 to $50 for a single transaction. The mining pools were making a killing back then. But the strategy backfired, as the users shifted to ETH, LTC and BCH.
So no matter what, the miners will have to be paid.
Bingo, bro. The cost of electricity or whether the mining equipment is already paid off only makes a small difference--and it's an unlikely scenario in most cases anyway that power is going to be free and mining has produced enough profit to pay for all the hardware in full. And if you're talking about a solar-powered mining farm, that just isn't going to happen if people don't pay fees (or very small ones).I'll admit I'm not expert in mining. I know very little about it, in fact. What I'm wondering is what would happen if bitcoin's price reached a level that was so insane that 1 satoshi was something like $5 or even higher. Would that not screw up the entire bitcoin system? There would be no way to send small amounts of bitcoin or very exact amounts, much less pay a fee to the miners. Am I missing something in that hypothetical case other than the fact that 1 satoshi will probably never be worth that much?
So I would like to add a possibility: if the necessary energy to move the mining activity was supplied *for free*, could btc transactions be executed for free as well? As the world is evolving, renewable sources of energy are becoming even more popular and sustainable (taking our daily needs in consideration). Elon Musk's Tesla has already made a 100mw battery, and the conclusion is that it's paid back in 20 months, an incredible economy compared to the expensive electricity we use yet.
Now think if a solar energy farm with a battery like that were used to create bitcoin transactions. It's an infinite and free source or energy, right? At least after the investment is paid back. My doubt is how miners could return the fees to the transaction senders in this case. Would it be possible? Would you like to add any thoughts?
If there was free electricity, miners would still need some incentives for working, right? Sure, they are mining and getting block rewards for now. But as less and less BTC is left, the bigger and bigger stake of the rewards come from transaction fees. What I am saying is that it's probably not a long-term solution anyway. All of the bitcoins will be mined by the middle of the next century. Yet someone will have to still validate the transactions, right? And they won't want to work for free, of course. Oh, and apart from investing time and perhaps paying salaries miners also need to cover the costs of their equipment, not just electricity. Once we solve the electricity and equipment costs problems, Bitcoins will be mined or very closed to be mined, and incentives for confirmations of transaction fees will be needed more than ever. Now think if a solar energy farm with a battery like that were used to create bitcoin transactions. It's an infinite and free source or energy, right? At least after the investment is paid back. My doubt is how miners could return the fees to the transaction senders in this case. Would it be possible? Would you like to add any thoughts?
The transaction fees are what keep miners mining, even with the access of these wind turbines and and solar panels they the electricity may not be cheap due to it, they miners needs to get paid well. The other option to take is to pick an altcoin where transaction is lesser. There are stable coins too, it that makes the charges fixed.
Thanks for all replies. I understand your concerns that even having access to a free source of energy there are the maintenance costs of the whole equipments, that can be very expensive. Although in the future I think this activity will be optimized: more powerful hardwares, longer durability, less equipments needed, cheaper costs involved. Consequently, a fee near zero cost is possible.
Another approach would be that even crypto friendly governments could offer this service in a far future. In a way people should pay only for the maintenance costs.
Another approach would be that even crypto friendly governments could offer this service in a far future. In a way people should pay only for the maintenance costs.
To create a "free energy system" are necessary a lot of money, and even so they can't make the bitcoin transaction for free, all of this cost money and after sometime the system need to be replaced with new solar panels, and also mining equipment is not cheap, so always will be a fee on bitcoin transactions.
It requires a lot of devices needed just to create a free energy system. And also free energy can't exist, because mostly the common source of energy is from our environment.
Agree with you to the part that it needed a lot of maintenance to cover up the whole system and the free bitcoin transaction is too ambitious. It's better to rely on environmental equipment like solar panels to decrease the power consumption on the device.
Free is free when a farm doesn't have land that it's renting or paid millions for in advance, and doesn't have any other operational cost. This is more of a fairytale.
The project is very ambitious and it's impossible to implement because of the details.
The logic is, what if all the miners are already using renewable energy and solar panel for their farms?
Isn't it free energy for all of them and the cost of mining would also be free? IMO, there's no need for any return from miners fee back to the sender because it's the fee for confirming our transactions.
Isn't it free energy for all of them and the cost of mining would also be free? IMO, there's no need for any return from miners fee back to the sender because it's the fee for confirming our transactions.
Free is free when a farm doesn't have land that it's renting or paid millions for in advance, and doesn't have any other operational cost. This is more of a fairytale.
People wrongly assume that pools represent one single entity, which isn't the case at all. Pools have thousands of larger/smaller miners pointing their hashrate to them, which means that the hashrate distribution in reality is more distrubited than the pie chart shows you. How on earth do you expect all these individual miners to enjoy 'free' electricity?
To create a "free energy system" are necessary a lot of money, and even so they can't make the bitcoin transaction for free, all of this cost money and after sometime the system need to be replaced with new solar panels, and also mining equipment is not cheap, so always will be a fee on bitcoin transactions.
It's important and necessary if they would mine freely through solar energy and it would decrease the energy consumption as well but I guess it couldn't make every crypto transactions free as well. It's where miners earn for their resources.
They could make it quite cheaper but they couldn't eliminate it.
They could make it quite cheaper but they couldn't eliminate it.
If bitcoin is really influential in the future, the solar power industry will surely have a good market and we can do it in the future.
transactions are becoming more and more investors need blocks to be processed faster.
I think we need to focus on exploiting bitcoin more in the future to make blocks processed faster and of course we will also be rewarded with bitcoin mining.
transactions are becoming more and more investors need blocks to be processed faster.
I think we need to focus on exploiting bitcoin more in the future to make blocks processed faster and of course we will also be rewarded with bitcoin mining.
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