Bitcoin use for transactions are getting low - page 2.

Siren

sr. member

Activity: 826

Merit: 265

Quote from: masterbt on December 15, 2017, 07:12:34 AM

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

Yes I agree with your statement. Bitcoin today is being used not for small transactions but rather for storing of wealth. Its a far cry from what the original designed by Satoshi. And unless the high tx fees and slow confirmation time is solve, it will take some time before we can really used it to pay someone from the other side of the planet.

And maybe this is the main reason why online retailers like Amazon, Ebay and even the rumored McDonalds is still not getting into bitcoin. Even Steam already stopped accepting bitcoin because of this reason.

Shamie1002

full member

Activity: 406

Merit: 102

You're a bit too early discussing things like this on your own my friend. I find it hard to believe that you understand the relationship between demand and supply to the movement of prices in the market. Also, the movement of fees in relation to the size of bytes per transaction.
Study hard buddy, I remember myself when I was in your place. Difficult at first.
As an explanation, like what others have said, the more transactions made, the higher the fees. More transactions causes traffic. That is why there are fees needed to accelerate some of the transactions to be confirmed or just wait for it like a traffic enforcer. Get that ?

Iranus

hero member

Activity: 1792

Merit: 534

Leading Crypto Sports Betting & Casino Platform

Quote from: masterbt on December 15, 2017, 07:12:34 AM

If there is many transaction then automatically fee will be reduced due to large number of transactions.

Clearly you need to spend some time reading about how Bitcoin works.

There cannot be more transactions confirmed unless the block size is increased; another method of increasing capacity is implemented; or the average size of a transaction in bytes decreases. As it is, blocks are pretty much all full.

I'm fully in favour of spending BTC in merchants when it's practical to do so, but the vast amount of transactions being sent for speculative purposes is making it far less practical.

Kprawn

legendary

Activity: 1904

Merit: 1074

This is why some of us are spending about 20% of all the bitcoins we buy. If you would have spend say $1000 {Fiat} on

something and you can spend that with Bitcoin, why would you not do that? You would be helping to support merchants that

supports Bitcoin. We are actively looking for merchants in our area that accept Bitcoin and we {recruit} Roll Eyes

new services all

the time. If I buy beer over the weekend? Then I take that budget and convert it to bitcoins and then buy that beer at a

merchant that supports Bitcoin. Grin

snipetr

full member

Activity: 294

Merit: 100

In my experience, many sites increses there transaction fees due to high demand for there site, directly proportional way i.e. increase in transaction fees with increase in number of transactions.
So due to this high transaction fees, people's hold bitcoins and wait for increase in price. And that is obvious, why one will do trasactions by spending that much high fee?

alyssa85

legendary

Activity: 1652

Merit: 1088

CryptoTalk.Org - Get Paid for every Post!

Quote from: masterbt on December 15, 2017, 07:12:34 AM

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

Many of the noobs who have bought, have done so via Coinbase, and are still blissfully unaware of bitcoin's scalability and fees problems. It will take a few months for them to realise it is unusable. At that point they might switch into an alt, if they've caught teh crypto bug, or cash out into fiat and give up on crypto.

Glutius

full member

Activity: 602

Merit: 100

Quote from: masterbt on December 15, 2017, 07:12:34 AM

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

You are right, maybe the price will decrease if there are more transactions, but if bitcoin continues to go up in price, the transactions will also go up. It's a vicious circle.

hakimovic

member

Activity: 98

Merit: 10

Quote from: masterbt on December 15, 2017, 07:12:34 AM

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

it's the opposite when the demand and the number of transaction increases the fees go crazy and the blocksize also go up . Bitcoin is still having the problem of scalability and if people hold that wouldn't effect the market really ,what would effect it is if institustions started to accept bitcoin and hold.

davis196

hero member

Activity: 3150

Merit: 937

Quote from: masterbt on December 15, 2017, 07:12:34 AM

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

I think that the relation between transaction volume and transaction fees is the opposite.
The more transactions,the higher the transaction fees.The number of transaction increased actually during the last month,so the fees increased as well.There aren`t many websites where you can spend your btc.
Big platforms like Steam and Fiverr cancelled bitcoin purchases because of the high fees.

masterbt

full member

Activity: 136

Merit: 100

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

If small transactions not approved fast then many will move out, leaving big fishes take out all money and we are facing a downfall.

Fees and confirmation time has to be reduced in some way.

Topic: Bitcoin use for transactions are getting low - page 2. (Read 272 times)