Topic: Bitcoin's transaction fee lowered by 4000% - page 2. (Read 709 times)

you are making a couple of additional mistakes too. when speaking of transaction fees you must never talk about them "per transaction" because it doesn't make any sense that way. instead you must always talk about them in terms of "per byte" or more accurately "per virtual bytes". then the numbers you report become more meaningful. secondly the values must be in bitcoin or a smaller unit such as satoshi to make sense. for example if i say i paid $1 for a tx you have no way of knowing whether i over paid or underpaid or it was ok. my tx size might have been 1 MB and i paid $1 for it or it might have been 170 bytes.

and finally comparing the current fees (ie. normal times) with the peak of a spam attack (abnormal special time) is not a fair comparison.

There is no technical correlation between the halving of the block reward and the average fee (in sat per vbyte) one has to pay in order to have a decent chance of getting your tx included in a block.

It's not the fee that's being halved, it's the block reward. Read some more here: https://en.bitcoin.it/wiki/Controlled_supply

Now because of the bitcoin halving there is a lot of changes will happen because of lacking the supply of the bitcoin there is a chance that the transaction will increase highly but still, the price of the bitcoin are in a low market price the transaction fee becomes more favorable to the people.

Bitcoin halving is about to take place and in this situation, the fees would gradually lower in amount.
There is nothing new in this actually because the halving process is going to reduce the fees for each transaction to broadcast which is going to increase the demand for bitcoins which gradually would also rise the price for bitcoins.
This is going to bring the bull runs soon so we all should remain close to bitcoins as we already are.

Transaction fees are pretty low these days, but how do these things happen? Let me remind you guys that people are holding rather than spending and trading because of so much speculation this year as bitcoin halving is awaited by many. Confirmed transactions today are 292, XXX almost 2x of the highest in 2017 which was at 450,XXX. The congestion really affects it that's why we have low fees now.

Lol. I even paid around $20 back in 2017 for a small scale transaction and that was really really embarrassing for me. But do not celebrate yet, I think the worst and higher is yet to come.

The far majority of those are dApp transactions. Not native Ether transactions. Makes a big difference.

One address's spam transactions accounts for over 50% of those 40,000 transactions.

Price fetching data and weather fetching data.

I don't know exactly what the ratio is between operations that are marked as transactions and actual transactions, but I can say that not all of them are actual transactions.

It's such a desperate attempt to talk down on Bitcoin. I do however agree that there should be more on-chain throughput, but that's a matter of time only with Segwit gaining more adoption and Schnorr hopefully this year.

Also, services are batching transactions to save on fees, which means that the actual number of transactions does go down, but the actual value transacted on-chain not.

Yep, and still the (brainwashed?) Bcashers continue with their false advertising even in this thread, and now I'll even answer to that.



One blue has similar or higher fees, one is a worthless shitcoin that has low fees because nobody is using it and the third is not a proper decentralized coin.

Yeah, I sent a transaction 2 weeks back and it costed me $0.35 (0.00003612) for a $250 transaction which is almost 0.1% of the amount and confirmation took 5 minutes while earlier had to pay minimum $5 in Nov 2019 while 2017 was expensive where each transaction had to have $10 fee attached. It's cheaper than ETH transactions.

I still remember that time lol, when I almost gambled away or lost most of my holdings and when I had like 0.002 btc or something, more than half of it went for a simple transaction and before I could see it I broadcasted the transaction and the fee was deducted haha. Glad the fees are so low now it feels good!

Time by time the price of the bitcoin increase and also the same with the transaction fee, we experience today that the market price of the bitcoin came from the lower price that is below five thousand dollars has a low transaction fee but now the price coming back and reached over ten thousand dollars but that increase also the platform that supports the use of crypto currency will now increase their transaction fee because they know the possibility of the bitcoin transaction fee will be increased too. As an investor, it is better if we make some trading to avoid having lost of money too because this method can help to lessen the transaction fee.

Oh yes, I remember those crazy times when to send a block, you had to pay 100,000-150,000 Satoshi. Then I personally used LTC and ETH for transfers, use BTC  was very expensive and very long, it seems that transactions took 2-3 hours. It’s good that these days have passed.

SegWit is active since 24 August 2017



Quite bad if they care more about their "american things" than Bitcoin itself.



The problem is usually the trading/arbitrage bots for which the time is indeed critical. They trigger on every significant price change and cause a spike.

The wallets are indeed badly set, some of them even having some automatic big fee, especially services. Of course, they need to make sure the transactions go through in a matter of hours, to keep the service credibility, but the big fees may be also a mix of laziness and bad programming which cause everybody some loses (and bad publicity to Bitcoin too). Just they are used all day long without big effect on the mempool size, so the spike problem is not there.



I see LN still as a beta. I was over enthusiastic about it when it started getting used, but the time is passing and it's still not final/used at a big scale.
The next version of Electrum having it may (or may not) be quite a leap forward, but we are still far from paying in the supermarket with Bitcoin and LN (which is imho the goal).

The high transaction fees in 2017 was occasioned as I read by Mempool attack. So then we had a lot of congested transactions. I suffered this then, couldn't just sell my bitcoin whenever I wanted because of fees and slow confirmation. Some custodian wallets worked fine then but with a fixed fee, I have never been a fan of Custodian wallet because of the risk they pose no key not your money. In 2017, viabtc came to my rescue by using their free service in speeding up my transaction. 

I love the silent truth in Tones post that scaling is working as regards bitcoin but scammers refuse to admit it. Maybe he regards some altcoin founders who always lash out on bitcoin because of high transaction fees and slow confirmation in the past as been scammers.

Let us wait for a major FOMO before deciding what's what. There is at least some batching and no Bitmain spamming but there is a hard limit that can't be gotten past and no sign of the madness that descended during that period. Fees have spiked violently upwards for brief spurts in recent times and that's a possible harbinger of it only being a matter of time before it gets sporty for long periods again.

Well, in the past there are this jerk/s that spam transactions. At that problem, people are paying large amount of transaction fees so they could be quickly approved. At that time a lot of people are really pissed with the transaction fees and transaction time, I think that is the reason of this drop. It is not that profitable when we talk about fees since there are still a lot of complains regarding to fees especially to exchanges.

the huge drop came after the 2017 bubble popped. huge inflows and outflows from exchanges (at inflated fee rates) ceased after that.

side note: this has a lot do with really bad fee estimation/overpayment by exchanges and wallets. it's not all about transaction volume. people tend to assume there is a linear relationship between transaction volume and fees but that isn't true.

a lot of exchanges (including the biggest ones like coinbase and bitmex) still aren't batching transactions.

Didn't most exchanges start using both Segwit and transaction batching within this time? That's gotta account for quite a big drop.

Also, most recipient addresses are Segwit these days.

But then again, trade volume has increased significantly, even since Bitcoin reached its peak back in December 2017.

Is it because most transfers are happening offchain now? e.g. virtual trades on exchanges, rather than direct wallet-to-wallet transfers?

The days of $50 transaction fees are likely long behind us in any case.

the memorable mempool backlogs in 2016 were likely caused by a sophisticated spam attack originating in august-september 2015. https://bravenewcoin.com/insights/bitcoin-spam-attack-stressed-network-for-at-least-18-months-claims-software-developer

the mid-late 2017 backlogs were less likely to have been "spam" attacks per se. they were highly correlated with rising bitcoin price and heightened exchange activity throughout the year, climaxing in december when the bubble popped. bitmex, coinbase, binance and others were either drastically overpaying for withdrawal transactions to ensure next-block delivery, not batching transactions, or both.

this will happen again during the next bubble, especially since exchanges have done very little to optimize their withdrawal systems. 8 months ago, coinbase's CEO said batched transactions "should be coming out in a few months". *crickets*

everyday, bitmex clogs the network during USA business hours with its unoptimized mass withdrawal. https://twitter.com/ziggamon/status/1134490591264497664


it all started way earlier than that. in 2015, coinwallet.eu kicked things off with their "stress test" of the network: https://bitcointalksearch.org/topic/ultimate-bitcoin-stress-test-monday-june-22nd-1300-gmt-1094865

this was shortly before the release of Bitcoin XT.

If I remember correctly, spamming started around the beggining of 2017, as a preparation for SegWit2x, to force community to accepted a big block fork, but at that time the fees were around $1. The rise to $20 and even $50 per tx can't be solely attributed to spam, that would be insanely costly. There's a simple explanation for such prices - it happened at the height of 2017 bubble, so it's reasonable to assume that those were real transactions done by users who wanted to cash out their profits.

There's some truth to OP's statement, as spamming today would be much more costly, but it's misleading to say that $20 fees are gone because of SegWit. I'm sure we will see high fees again during another peak of the market, there's already a strong correletion between price going up and amount of transaction temporarily following it.

segwit came into effect in summer 2017

the highest fee ever seen came after segwit.. (december 2017)
why
because segwit forced many transaction types to cost 4x usual amounts.
so if someone sending a legacy transaction paid $20 in december 2017.. if the exact same circumstances and demand was to occur in 2016. they would have only paid $5

also the reason for the $20 was due to a exchange price of $20k(winter) compared to $5k(summer)
so again same situation as just described. but taking the exchange price into account when calculating sats per bytes.
if there was same demand.. but in 2016 and without the exchange price.. the most you would have paid was $1.25

yep. the peak price of fee's should have been $1.25. but DUE TO SEGWIT's 4x of fee's and the whole price  rise drama on exchange caused the TEMPORARY peak of a $20 fee.

this is not due to legacy transactions being bad. this aint to do with bitcoin being broke . nothing to do with segwit making things cheaper. but purely due to hype being glorified as how a temporal event being wrote out as a 'average' price.. (facepalm) to then pretend things got better..

no.. after segwit .. things got worse.. then it recovered
too many stupid people think the $20 fee and the $20k exchange rate are normal long term averages to base things off of.. sorry they were not. they were stupidly short term flukes and should not be used to base average expectations off of to then compare.

wise up people. stop jumping on the segwit hype train.

cant beleive people saying todays fee's of $0.50 is ok..
in 2015 people were creating hell when feels were over $0.20
yet strangely.. saying fees of $0.50 are now deemed as cheap

where did the 2015 promise of cheaper sub cent fee's disapear to.
come on 2009-2015 people wanted to pay under $0.01
devs promoted their 'fixes' to achieve that..
yet here we are 2020. being told $0.50 is acceptable.

screw it. lets take a $10k car. from 2015.. price it temporarilly at $200k for just a couple months.. and then start advertising that the car is at a great deal and worthy paying $50k for it..

or wise up and ask why the heck isnt it $5k or atleast the same $10k
soo many people are duped into the stupid advertising ploy without realising the numbers dont actually meet expectations when they really think about it

wise up people