Transaction Fees and Savings PlansI just read an article about another project to buy bitcoin with the small change left over from fiat transactions. My first thought was that it would never work because the transaction fees in bitcoin haven't been small change since May 2016. But after reading the article, I knew that they were proposing to add up the small change in the background until its value totalled $10, and then buy bitcoin with that.
https://qz.com/1095292/dust-lets-you-buy-bitcoin-with-spare-change-with-monzo/Totalling it up to $10 and then taking out a chunk sort of defeats the purpose of squirrelling away the little bits when they aren't noticed. But the real concern here is that even in $10 chunks, bitcoin is not a good investment option. In 2017 bitcoin transaction fees averaged around $3 according to:
https://bitinfocharts.com/comparison/bitcoin-transactionfees.htmlSo before you even start to make a profit on your investment, your $7 worth of bitcoin must increase to $10 worth of value just to make back the transaction fee. So with bitcoin currently at $4,400, the investor would have to wait for bitcoin to be worth $6,285 before they are back to where they were if they had left that change in their pocket.
From what I could tell by looking at the DNotes blockchain, there is no fee charged with a transaction. This means that you're not taking two steps backwards when trying to take a step forwards. I'm sure the idea of putting away small change into DNotes will get even more attractive once DNotes2.0 enables the investment and staking rewards.
Thank you, Tim, for another great observation. As you know, DNotes is a strong advocate of a disciplined savings plan starting at an early age. Insufficient savings for emergency and retirement are among the biggest challenges confronting the global population, including rich countries like USA and England.
There are billions of people around the world who do not have the money to meet their basic necessities. Many go hungry or eat whatever is available to survive. I grew up in a poor farm family and know what it means not to have 10 cents to buy a serving of stir fried Chinese noodles for school lunch – staying hungry while watching other kids ate.
DNotes is not just another digital currency. Instead, it is built as a trusted digital currency for the masses with a purpose. Everything that we do has our stakeholders and the common people in mind – as well reflected in our ecosystems. And that is just the beginning. We will continue to invest in projects that are positively impactful and beneficial to many. One of our requirements is that, over the long term, all projects must meet DNotes Global Inc. business models of sustainable growth and profitability.
I am very appreciative of the fact that without Bitcoin there is no DNotes. However, though I believe that Bitcoin will remain successful, it is not the viable digital currency for the masses. High unit price, high transaction fees, constant in-fighting, and extremely high cost of production in terms of high energy cost in Proof of Work (POW) mining, are among the issues leading to my conclusion.
With our family of CRISPs and DNOtesVault coupled with various rewards amounting to around 8% annual returns DNotes 2.0 is our commitment to engage millions of potential digital currency savers. I believe that along with nearly zero in transaction fees our CRISP savings plans will become very popular.
