Topic: Excessive Bitcoin fees - page 4. (Read 1162 times)

Hello all,

Thank you for your thoughtful feedback and insights

Exciting times as we approach ATHs. However, I notice that fees always go up a lot when the price is more volatile. Naturally, people are more inclined to keep their coins on exchanges during these periods, which is obviously not a good thing.

The most recent block averaged 60sat/vB, equating to roughly $5.50 for a single input/output transaction. If one were to DCA into self-custody at $100 intervals, they're paying (at least) 5.5% to transaction fees atm.

You shouldn’t get scared if this happened because it only means that more people will hold their Bitcoin because it’s very expensive to transfer and do a quick trade using it. People will value holding that time due to the expensive fee. This is only possible if Bitcoin price skyrocket to insane price level because the transaction will not stay in high amount(fiat value) for too long if the reason is due to increased on Bitcoin transactions.

Bitcoin fee is based on sat amount which means if the time comes that Bitcoin fee is expensive even without network congestion, I think all of us Bitcoin holder will have a massive profit due to huge price increase.

I get scared when I imagine this happening especially during the recent times the fees went too high. It was a sad time to remember and I do wish we do not get to that point again. I must admit that I for once, doubted the possibility of Bitcoin adoption in the mainstream because such high fees is not something someone who wants to pay for goods and services will be willing to pay. It defeats the essence of using Bitcoin for payment. We also saw more people storing their Bitcoin in CEX to avoid paying high fees especially thpse using the DCA method which require regular transactions. Wish we will never get to that point again.

The fees are quite stable nowadays and that's so much better compared to the time when the network was attacked by the bitcoin ordinals spams. Why we're always thinking that it is only the large institutions can afford to pay such fees? You'll never know how many individuals out there globally that are low profile and can pay such fees as long as they need to transfer any BTC from them to anyone that they're sending or needing to get some payment from them. But what we all want is to see Bitcoin again in great shape in terms of its fees and hopefully it goes back to 1 sat/vByte for every transaction that we make. But since we're in a bull run, I am not expecting that we'd see that anytime soon.

Yes the problem here is we are happy when the value of Bitcoin increases and we should be aware that the fee is calculated in SAT as you have clarified and it's not the increase in fee structure but rather the value of SAT gets increased, since this is not based on USD we feel pinch in our pocket when making transactions. This is something which we cannot resolve and the two options left to use would be either don't make micro payments through BTC when you feel the price is high as we compare it with our currency, second use any other altcoin for micro payments as I use TRX for such purpose and we need to understand that fee will increase when the value has increased and we cannot compare it with USD or other currency but SAT.

Take note that tx fees should be valued in sats/vbyte and not in dollars or any other currency. We used to make tx's with as low as 1 sat/vbyte before, right now fees are not as bad as it was during the ordinals craze, but not as low as it was when tx fees were very cheap. It is worth mentioning that people make a lot of micro payments using BTC, and if what they have to pay in fees is equivalent to $1 or above, then it may be considered expensive. However, like you said, if you are sending a large amount or making cross-border payments, then that amount in fees is good.

If only few people are making transactions then obviously the fee will get lowered after sometime unless someone really want to burn their money to keep the retail users from using the Bitcoin network. As far as I know the clogs won't last for very long but the one that lasting long is due to the ordinals spam but fees went considerably to low range from where it was but still 1sat/byte tx seems far away considering the bull already kicked in so obviously there will be more play on the network.

Well, it depends on how high is the fee. $1 for the transaction is nothing. And even $10 is not much if you're transferring thousands of USD in Bitcoin.

People will have different views on this.

If they see it in satoshi spent for transaction fee, they will feel more comfortable.
If they see it in $ value of their satoshi spent for transaction fee, they will feel uncomfortable because they are spending more $ than in the past when Bitcoin price was cheaper than in 2024.

I believe we can not find an agreement for this as it depends on personal view.

Fees are not high at all in the past weeks.
You can't look at the btc price and say fees are high, it's still the same sat/b it was before, only 1 sat is worth more now.

We can consider ourselves happy we don't see fees like 100-200sat/b at the moment.
Last time the price went through the roof the transaction fees skyrocketed to like 30$ per transaction.

These days we have at the moment are so easy peasy, I don't even know why somebody brought this thread back out.

Yeah, usually there's string when someone do something for free. For example, ViaBTC offer free acceleration service in order to promote their pool and paid acceleration service.


I disagree, it'd also discourage people from using Bitcoin as currency or payment method.

Mate, if those people that know how the system operates kno that when their is congestion of unconfirmed transaction and still incoming ones, how will those that is unaware do in this situation, for me I will say that this problem needs to solved once and for all, though I have been supporter of longterm hodling but we can't still dispute the fact that there known hodlers who receive payment through bitcoin how will this know of people survive the high fee stuff, I think some thing needed to be done, this high fee of a thing can cause discouragement for potential investors.

I believe that people have different wallets, the one for hodling and the one for withdrawal purposes, what if the wallet is not an exchange wallet what will such person be doing during the high fee season, let their be upgrade to accommodate whichever number of transactions coming in other to continue the smooth process of transactions. 

In the areas of fees, it’s all depends on the high volume of transaction during that time. Yes, from the last year and this year transaction fees has been so high, because a lot of transaction is going on, and the only way your transaction can confirm easily or reach the complete block Confirmation is when the transaction fee is high, that is why wallet like  blockchain is always easy for you to decide how fast your transaction goes because you have to be the one to set the fees you want. so actually the level of fees this year will continue to be high, and it may not really reduce because of the bull run. So complaining about fees this time may not really change anything because I can see that it is high in different platform so we just have to manage it and it is good to use the Blockchain so you can be able to set your fees as you want it to enable your transaction fast or slow or depend on the individuals. I have been using Blockchain for a while now because it is usually good for me because of this fees of a thing transaction that does not require me to use as fast as I want or I may not need it. At that point I can decide to set the lower fee which it will take time before it gets to the destination of the nest wallet, it usually takes time to complete the block confirmation because of the fees. Complaining about fees at this point may not really matter.

It isn't centralized when bitcoin transaction fees become high. It is because of the congestion that makes transaction fees very high to some people. If you're not using non-custodial wallet then you may mot be able to set the fees manually and that's why it is not cheap to some people and if the wallet you use let's you manually set the transaction fee then you won't have to pay higher transaction fee. As of now, the transaction fee have decreased which around 20+ sats/byte compared to 5 weeks ago where the transaction fee is around 50 sats/byte up to 100+ sats/byte which you can see on block 826998.

If you don't accept that, the solution for you is to use CEX, don't be too demanding that this market serves the best for you. I understand the feeling that we all want favorable things, but we should understand that it is like a road that has been built if you don't walk on it then let someone else go, the competition in the space is quite different. And also the fact that it's just like a fighting game of gambling, if you don't get money from someone else, you lose money.

Should centralization/decentralization go hand in hand or only one pole exists and problems arise, if one hypothesizes a world where excessive decentralization leads to loss of control, the emergence of of centralization as the solution that bitcoin exists in this world context.

 Frankly speaking the fee is high from my end because I made a transfer of a unit of bitcoin this and the amount I was charged was amazing. I was charged $15.18 and that is a vet huge amount of money . So I can't say the transaction fee is good or okay. And most people are saying that the transaction fee is low because of others are saying it and they on their own have not done any transactions but following other people talk to follow up. And from what I experienced this week, transaction fee is still high. Assuming I want pay something I bought in a shop with that amount, and I would pay that amount to buy the goods? That is too much.  The developers of bitcoin should still work on the transaction fee and reduce it very well so that transaction will be very interesting.

I don’t find anyone to really do anything for free especially, when it’s going to cost them something to do it. Miners gets to procure these devices to enable them mine and get the rewards that follow, they spend on energy too used by these devices that have pushed environmentalist to take interest on energy used by mining and so, having any hope that these shouldn’t be subsidized from fees is a mistaken idea.

While the model of high fees would not be acceptable, it tends to persist only for a period of time and that in itself is acceptable. In a way, it discourages users from making more and more transactions which would in turn result in scarcity and that is good for the system I think.

Bitcoin system is organized and quite easy to predict, it has its seasons, bull run, bear run and halving, also a time when mempool is congested, it had congestions towards the last quarter of last year, and people who are knowledgeable about how Bitcoin seasons works were not panicked, they knew that it happens. To the layman's understanding, when there are too many transactions, the mempool will be congested and transaction fees will be high, when eventually the mempool dicongests, transaction fees will come back to normal, simple economics.

Unless hopefully the Bitcoin developers does something to address the issue, we're still stuck with the system, if a holder can't pay the high fees, when there's congestion, then let him use alternative means that have been mentioned on this thread.

Today the price of Bitcoin has increased, but the amount of Bitcoin fees has not increased with it. It is often seen that as the price of Bitcoin increases, so does the amount of Bitcoin fees. According to mempool.space today, Bitcoin fees amount


https://mempool.space/

You must use a non-custodial wallet to avoid transaction fees and keep your assets safe. If you are using a custodial wallet then there is a fixed fee that you have to pay for any token transaction that they charge and then make the transaction.

If you use a non-custodial wallet instead of a custodial wallet, then you can trade any token you want with a fee.

A centralized exchange must be used for trading to avoid transaction fees. But when one wants to hold bitcoin he must buy bitcoin and hold it in a non-custodial wallet because we all know a saying that not your key not your bitcoin. If you use a decentralized wallet, you will be in full control of your Bitcoins. In this case paying some fee for the safety of your bitcoins will not be a big deal.