Default transaction fee is too low | Bitcointalksearch.org

firefop

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Quote from: Desolator on October 09, 2012, 09:42:25 AM

You do realize that if everyone else is at XXX and you're at XXX + 0.001 then your transactions will be processed first. So if you think the transaction fee is too low don't tell everyone else to up their fee, just up yours (lol! Grin

)

Btw almost no mining pools share their fees with users. That's not how bitcoin was supposed to work in the long run!

Granted - Most pools don't share in them, using them to pay for pool costs.

If you're a hobbyist or small time miner, that shouldn't bother you. You're paying for a service (reduction in variance) or other value you get from the pool.

If you're a professional miner (use it as a primary income stream) then idea is to control enough hash to solo mine at a decent rate.

wabber

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You want the default fee to be higher?
Actually theres no such thing as a default fee. The bitcoin protocol doesn't enforce anything about fees.

Desolator

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You do realize that if everyone else is at XXX and you're at XXX + 0.001 then your transactions will be processed first. So if you think the transaction fee is too low don't tell everyone else to up their fee, just up yours (lol! Grin

)

Btw almost no mining pools share their fees with users. That's not how bitcoin was supposed to work in the long run!

firefop

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Quote from: IMakeComps on October 01, 2012, 11:26:05 AM

As a miner, I hope the amount of transaction fees increases.

I don't - volume of transactions needs to increase instead. Of course that's what we're trying to do with mainstream adoption. Assuming we for 10% of visa's transaction load (aprox ~2000 tx per second on average) - with current tx cost - we'd be looking at 8640 btc in tx fees per day - that's more than the block rewards ever been. . . I imagine most 3rd party services will include the cost of the base fee added into their charges.

Even if they don't we could always go make a min req fee be 0.0001 for example... and get 1728 btc in tx fees per day. In this way mining will remain attractive long term - especially once ASIC development for bitcoin catches up to state of the art (18nm silicon?) or gets near it anyway, assuming that equipment is paid for at some point, miners will still mine.

legolouman

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Quote from: phillipsjk on October 02, 2012, 09:22:10 AM

That is how mining is supposed to work. It was broght up in one of the butterfly labs threads that during the gold rush, most the miners didn't make any money. It was the people selling supplies to the miners that made the most reliable returns.

If you think 0.0005 BTC is too low for a transaction fee, refuse to process transactions with such a small fee.

BTW, If I start mining (with ASICs presumably), I am projecting a loss of about 80%, based on being able to mine only one 25BTC block in the next year (at current prices). If I mine, I plan on using the/a P2P pool, just to make the network more resiliant. I am getting commercial Internet access just so that I am allowed to host "servers".

That's a good idea. Forcing the network to use higher transactions.

phillipsjk

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Let the chips fall where they may.

That is how mining is supposed to work. It was broght up in one of the butterfly labs threads that during the gold rush, most the miners didn't make any money. It was the people selling supplies to the miners that made the most reliable returns.

If you think 0.0005 BTC is too low for a transaction fee, refuse to process transactions with such a small fee.

BTW, If I start mining (with ASICs presumably), I am projecting a loss of about 80%, based on being able to mine only one 25BTC block in the next year (at current prices). If I mine, I plan on using the/a P2P pool, just to make the network more resiliant. I am getting commercial Internet access just so that I am allowed to host "servers".

legolouman

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Quote from: goodlord666 on October 01, 2012, 04:13:22 PM

You are deluding yourselves.

All I hear is "in the far future" and "hope".

With value going up transaction fees will only ever be lowered. Even if the standard fee were to be doubled to 0.001 now it wouldn't make up for the difference in coin generation revenue which is soon to be halved. Not at current tx volumes.

"In the far future", actual transaction volume on the base network may be comparatively low, due to the majority of transactions being moved to 2nd tier payment processors.

The majority of miners will be held in a constant state of never quite reaching break even, indefinitely.

If I was to become a billionaire Bitcoin tycoon I would want my working class to profit and prosper now, not in the "far future" and not "hopefully".

Miners' income from tx fees to be reasonable should have been about equal to coin generation revenue for a long time.

You are indebting yourselves with hidden costs and a strong Pool Union may be inevitable.

Sincerely,
the village idiot

So much of this. I felt for a while I was the only one that though this.

goodlord666

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100%

You are deluding yourselves.

All I hear is "in the far future" and "hope".

With value going up transaction fees will only ever be lowered. Even if the standard fee were to be doubled to 0.001 now it wouldn't make up for the difference in coin generation revenue which is soon to be halved. Not at current tx volumes.

"In the far future", actual transaction volume on the base network may be comparatively low, due to the majority of transactions being moved to 2nd tier payment processors.

The majority of miners will be held in a constant state of never quite reaching break even, indefinitely.

If I was to become a billionaire Bitcoin tycoon I would want my working class to profit and prosper now, not in the "far future" and not "hopefully".

Miners' income from tx fees to be reasonable should have been about equal to coin generation revenue for a long time.

You are indebting yourselves with hidden costs and a strong Pool Union may be inevitable.

Sincerely,
the village idiot

IMakeComps

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As a miner, I hope the amount of transaction fees increases.

VeeMiner

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bitcoin hodler

Quote from: legolouman on September 30, 2012, 04:51:48 PM

I think what he means is that the reward given to the miner with a fee of .0005 is too low, and I entirely agree with that. In the far future, the fees will have to be very worthwhile for miners to continue running their rigs.

in the far future there will be so many transactions and BTC will have so much higher value that the miners will be richly rewarded with no problems.

legolouman

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I think what he means is that the reward given to the miner with a fee of .0005 is too low, and I entirely agree with that. In the far future, the fees will have to be very worthwhile for miners to continue running their rigs.

Stephen Gornick

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Quote from: goodlord666 on September 30, 2012, 03:05:00 PM

It should be 0.001 for the time being.

Are you saying this because 0.0005 transactions aren't first in line? So what happens when everyone is at 0.001 and you have do be 0.002 in order to get first in line, will a 0.001 fee then be too low?

The answer, is yes, of course. So the fee you pay should be on your individual circumstances. If you want to improve the changes of getting into the next block, then a higher fee can help.

plogank

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Quote from: goodlord666 on September 30, 2012, 03:05:00 PM

It should be 0.001 for the time being.

I'm not a miner myself (although, technically, I did contribute 6 or so shares on BTCGuild recently just to see what it's like.)

If you disagree, you're wrong.

I've been at 0.001 for a long time.

ThomasV

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Quote from: goodlord666 on September 30, 2012, 03:05:00 PM

If you disagree, you're wrong.

I felt this had to be quoted...

goodlord666

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It should be 0.001 for the time being.

I'm not a miner myself (although, technically, I did contribute 6 or so shares on BTCGuild recently just to see what it's like.)

If you disagree, you're wrong.

Topic: Default transaction fee is too low (Read 1690 times)