High transaction fees affects those who DCA - page 4.

stomachgrowls

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Quote from: fzkto on December 22, 2023, 12:54:01 PM

Quote from: ShowOff on December 22, 2023, 05:07:10 AM

Quote from: fzkto on December 22, 2023, 04:24:43 AM

Quote from: Hamphser on December 21, 2023, 04:34:29 PM

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The popularity of these shitcoins has really had a very bad effect on transaction fees. And the worst part is that these brc-20 are appearing more and more like it was once with ethereum. The fees were huge back then too. But there is hope for bitcoin developers to somehow influence these tokens.

On the one hand, miners are really benefiting from the current conditions, I mean they are actually generating good income as long as transaction fees are expensive. Minners benefit at the moment, but this situation is very unpleasant for users. I checked the last 3 blocks to find out the transaction fee amount for each block, here's an example:

Code:

Block 822370 > Total fees 1.596 BTC ($69,589) > Subsidy + fees ‎7.846 BTC ($342,114)
Block 822369 > Total fees 1.637 BTC ($71,380) > Subsidy + fees	‎7.887 BTC ($343,905)
Block 822368 > Total fees ‎2.094 BTC ($91,313) > Subsidy + fees	‎8.344 BTC ($363,838)

Of course miners have a huge profit because of this situation. It was the same before with ether, when defi and so on appeared. But for ordinary users it is a nightmare. For example, to make a purchase for $20 in bitcoin, you have to pay the same amount of fees.

Checking out those accumulated fees on each block then thats really a hell a lot amount of money on which it is really that an advantage for miners with this current condition of the network on which they could really indeed make money but its true that it is really indeed a hassle thing for those who do make out those small buys on which you cant really be able to hedge even with the slightest profit on which these fees could really make things that giving that headache as if you wont really be able to set out with those small fee amount then transaction would really be that delayed for long time. This is why i have that made out a decision on
making some skip of doing transactions a the gas fees are really that on the rooftop and its never been that a good thing to hedge up.

So to those who are affected then it would be always better that you should just skip on making transactions and wait up for the network condition to normalize which it do usually goes
for a week or so but it seems that this situations comes to often now just like on what said above.

fzkto

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Quote from: ShowOff on December 22, 2023, 05:07:10 AM

Quote from: fzkto on December 22, 2023, 04:24:43 AM

Quote from: Hamphser on December 21, 2023, 04:34:29 PM

-

The popularity of these shitcoins has really had a very bad effect on transaction fees. And the worst part is that these brc-20 are appearing more and more like it was once with ethereum. The fees were huge back then too. But there is hope for bitcoin developers to somehow influence these tokens.

On the one hand, miners are really benefiting from the current conditions, I mean they are actually generating good income as long as transaction fees are expensive. Minners benefit at the moment, but this situation is very unpleasant for users. I checked the last 3 blocks to find out the transaction fee amount for each block, here's an example:

Code:

Block 822370 > Total fees 1.596 BTC ($69,589) > Subsidy + fees ‎7.846 BTC ($342,114)
Block 822369 > Total fees 1.637 BTC ($71,380) > Subsidy + fees	‎7.887 BTC ($343,905)
Block 822368 > Total fees ‎2.094 BTC ($91,313) > Subsidy + fees	‎8.344 BTC ($363,838)

Of course miners have a huge profit because of this situation. It was the same before with ether, when defi and so on appeared. But for ordinary users it is a nightmare. For example, to make a purchase for $20 in bitcoin, you have to pay the same amount of fees.

decodx

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Quote from: lixer on December 22, 2023, 10:30:33 AM

Quote from: AakZaki on December 20, 2023, 03:58:19 PM

in the end everything will be fine and those who panic too much about fees that are too high certainly don't have a strong stance to stay with Bitcoin. if the costs get higher I just stop and observe until the costs return to normal. DCA certainly doesn't have to always be on time, also looking at the condition of the Bitcoin network. if it's too expensive then collect it and buy it when it gets better.

I don't think it has anything to do with panic or anything. It's something very clear, fees are very high and they are affecting almost everyone not just people who panic because of small things. Even if I'm a very big Bitcoin believer and I never panic, I would also be affected because of high fees if I make transactions regularly whether it's because I'm DCAing or for any other reason. It might be possible for some to delay their purchases or transactions, but that's not what everyone can do.

Do you think that the entire Bitcoin community can simply hold their assets and make no transactions at all? That's not possible and it's never going to happen. However, those who DCA using centralized exchanges, can simply buy some USDT inside the exchange using P2P trades and then buy with that money and keep it within the exchange until things start to normalize.

It does seem kinda unfair to act like people are just panicking when they bring up the high fees. Like you said, even big Bitcoin fans can get slammed by the fees if they need to move their coins around a lot for dollar cost averaging or whatever else. And some folks actually do use Bitcoin for everyday buys, so when the fees spike, it makes those transactions stupid expensive or even impossible.

The exchange thing you mentioned could be a workaround for avoiding the fees when DCAing but it's not perfect. You still gotta trust that third party, which opens up risks and plus it doesn't really fix the underlying issue here - those high fees are still a problem for Bitcoin as a whole.

There's legitimate issues around Bitcoin scalability and fees that still need solutions. We gotta have open and honest conversations to make progress.

GigaBit

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Quote from: Agbamoni on November 25, 2023, 09:28:16 PM

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

This is a big problem for those who transact small amounts with Bitcoin due to its high transaction fees especially those who follow DCA. But since this is a temporary problem, getting excited about it will not find any solution. But now the only solution for those doing DCA is to use Exchange platform. DCA is done by holding it on the exchange platform until the transaction fee is reduced and i think with in shortest possible of time there is no inconvenience to the users. As soon as the transaction fee is low, it can be transferred to different wallets according to one's choice.

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Quote from: AakZaki on December 20, 2023, 03:58:19 PM

in the end everything will be fine and those who panic too much about fees that are too high certainly don't have a strong stance to stay with Bitcoin. if the costs get higher I just stop and observe until the costs return to normal. DCA certainly doesn't have to always be on time, also looking at the condition of the Bitcoin network. if it's too expensive then collect it and buy it when it gets better.

I don't think it has anything to do with panic or anything. It's something very clear, fees are very high and they are affecting almost everyone not just people who panic because of small things. Even if I'm a very big Bitcoin believer and I never panic, I would also be affected because of high fees if I make transactions regularly whether it's because I'm DCAing or for any other reason. It might be possible for some to delay their purchases or transactions, but that's not what everyone can do.

Do you think that the entire Bitcoin community can simply hold their assets and make no transactions at all? That's not possible and it's never going to happen. However, those who DCA using centralized exchanges, can simply buy some USDT inside the exchange using P2P trades and then buy with that money and keep it within the exchange until things start to normalize.

Zigabel

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Quote from: Agbamoni on November 25, 2023, 09:28:16 PM

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

The second option sounds better, they way you spend less on transactions because you transaction fee will be charged on every transaction, but if you sum up the transaction for a one time you will end up spending less, if you do transact three or four times a month, you could sum them up to one or two transactions a month and you transaction fee on your DCA could be fair than it would be if it's done weekly. You may get a separate account for your DCA with limited access so you don't get to spend it on something else at the end of the month you DCA.

yudi09

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Quote from: ShowOff on December 22, 2023, 05:07:10 AM

On the one hand, miners are really benefiting from the current conditions, I mean they are actually generating good income as long as transaction fees are expensive. Minners benefit at the moment, but this situation is very unpleasant for users. I checked the last 3 blocks to find out the transaction fee amount for each block, here's an example:

Code:

Block 822370 > Total fees 1.596 BTC ($69,589) > Subsidy + fees ‎7.846 BTC ($342,114)
Block 822369 > Total fees 1.637 BTC ($71,380) > Subsidy + fees	‎7.887 BTC ($343,905)
Block 822368 > Total fees ‎2.094 BTC ($91,313) > Subsidy + fees	‎8.344 BTC ($363,838)

The next block from the block you mentioned experiences an increase in fees. Starting from block 822371 with total fees ‎2,003 BTC $87,417 to block 822379 total fees ‎reaching 1,893 BTC $82,763.
There have been 9 successful blocks with costs increasing from the blocks you mentioned.
I think that this is the time for miners to get more profits than they usually get when mining.

https://mempool.space/block/000000000000000000042a22d5a1904e50644c58df0eb1b351c03624f62aa950
Images can be enlarged in a new tab.

ShowOff

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Quote from: fzkto on December 22, 2023, 04:24:43 AM

Quote from: Hamphser on December 21, 2023, 04:34:29 PM

-

The popularity of these shitcoins has really had a very bad effect on transaction fees. And the worst part is that these brc-20 are appearing more and more like it was once with ethereum. The fees were huge back then too. But there is hope for bitcoin developers to somehow influence these tokens.

On the one hand, miners are really benefiting from the current conditions, I mean they are actually generating good income as long as transaction fees are expensive. Minners benefit at the moment, but this situation is very unpleasant for users. I checked the last 3 blocks to find out the transaction fee amount for each block, here's an example:

Code:

Block 822370 > Total fees 1.596 BTC ($69,589) > Subsidy + fees ‎7.846 BTC ($342,114)
Block 822369 > Total fees 1.637 BTC ($71,380) > Subsidy + fees	‎7.887 BTC ($343,905)
Block 822368 > Total fees ‎2.094 BTC ($91,313) > Subsidy + fees	‎8.344 BTC ($363,838)

fzkto

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Quote from: Hamphser on December 21, 2023, 04:34:29 PM

Quote from: fzkto on December 21, 2023, 03:58:10 PM

Quote from: Davian144 on December 19, 2023, 06:26:00 PM

Quote from: fzkto on December 19, 2023, 09:50:07 AM

High fees on the bitcoin blockchain have happened occasionally. But it hasn't been prolonged. Although now the commissions are really unreasonably high. I hope that the hype around brc-20 tokens will stop and the commissions will become small again.

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

The price of bitcoin and the cost of transactions do not correlate much. Now the cost of commissions has gone up because of the popularity of brc tokens. You are right to say that the price of commissions will be lower when the bitcoin blockchain is not as busy as it is now. But for that we need improvements in the code.

If we are really just trying to look on whats the actual thing which is happening on why these sudden spike on fee?

The primary cause of this spike can be attributed to increased network activity. The bitcoin network saw a surge in transactions due to the popularity of BRC-20 tokens and bitcoin ordinal inscriptions, leading to increased congestion. The number of pending transactions piled up to 470,000, creating a backlog in the Mempool, the network's temporary repository for all pending transactions awaiting validation.

Just like into those sentiments above, it is really just that too shit for this Brc20 tokens that currently been flooding into the market.
Transaction numbers and fees cost are really that sky rocketing.

The popularity of these shitcoins has really had a very bad effect on transaction fees. And the worst part is that these brc-20 are appearing more and more like it was once with ethereum. The fees were huge back then too. But there is hope for bitcoin developers to somehow influence these tokens.

Popkon6

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Bitcoin transactions are currently the biggest hurdle for those investing in the Bitcoin DCA system. However, in case of Bitcoin investment, the transaction fee will not be a problem because you can earn extra money from it. Investing in the DCA method will certainly cost more, which is why holders are currently facing the most pressure for rising Bitcoin transaction fees.

TrustedBitcoiner

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Quote from: dansus021 on December 21, 2023, 10:57:49 PM

It does hit really hard for people who like DCA and do not keep their money in centralized exchange, in fact because this F*cking ordinal is really hard for everyone except the miner who get 3-6 Btc in a single block.

Merchant or a freelancer like will be also hit by the high fee because they should consider the fee and must to add to their service for a freelancer and merchant might see less people using bitcoin if this not allowing down

everyone that isnt moving +10K around is going to have to move down to layer2

there isnt enogh space on L1 to move 200-300$ at a time, we got small .Png files to move Cool

dansus021

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It does hit really hard for people who like DCA and do not keep their money in centralized exchange, in fact because this F*cking ordinal is really hard for everyone except the miner who get 3-6 Btc in a single block.

Merchant or a freelancer like will be also hit by the high fee because they should consider the fee and must to add to their service for a freelancer and merchant might see less people using bitcoin if this not allowing down

Ryu_Ar1

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Quote from: Agbamoni on November 25, 2023, 09:28:16 PM

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

This is indeed quite pronounced especially if our choice does not want to leave the assets we have on the exchange but in this case it does not mean that we cannot minimize it.
I still run my DCA even though the current transaction costs are still quite large but for me personally now I still dont feel a significant impact in this regard.
Indeed i also don't really like it when storing assets on the exchange but from the beginning of my DCA I always made purchases on the exchange until a month or 2 after that I moved it to my personal wallet bcause it was to minimize shipping costs every week even though it might not be very popular with most people but I think it's still very worth it to do because regardless of the high cost or not in this case we also know that its not recommended to keep assets on the exchange for too long but that doesn't mean we shouldnt do it if there are some considerations to think about such as reducing the burden for shipping costs to the main wallet.

Hamphser

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Quote from: fzkto on December 21, 2023, 03:58:10 PM

Quote from: Davian144 on December 19, 2023, 06:26:00 PM

Quote from: fzkto on December 19, 2023, 09:50:07 AM

High fees on the bitcoin blockchain have happened occasionally. But it hasn't been prolonged. Although now the commissions are really unreasonably high. I hope that the hype around brc-20 tokens will stop and the commissions will become small again.

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

The price of bitcoin and the cost of transactions do not correlate much. Now the cost of commissions has gone up because of the popularity of brc tokens. You are right to say that the price of commissions will be lower when the bitcoin blockchain is not as busy as it is now. But for that we need improvements in the code.

If we are really just trying to look on whats the actual thing which is happening on why these sudden spike on fee?

The primary cause of this spike can be attributed to increased network activity. The bitcoin network saw a surge in transactions due to the popularity of BRC-20 tokens and bitcoin ordinal inscriptions, leading to increased congestion. The number of pending transactions piled up to 470,000, creating a backlog in the Mempool, the network's temporary repository for all pending transactions awaiting validation.

Just like into those sentiments above, it is really just that too shit for this Brc20 tokens that currently been flooding into the market.
Transaction numbers and fees cost are really that sky rocketing.

fzkto

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Quote from: Davian144 on December 19, 2023, 06:26:00 PM

Quote from: fzkto on December 19, 2023, 09:50:07 AM

High fees on the bitcoin blockchain have happened occasionally. But it hasn't been prolonged. Although now the commissions are really unreasonably high. I hope that the hype around brc-20 tokens will stop and the commissions will become small again.

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

The price of bitcoin and the cost of transactions do not correlate much. Now the cost of commissions has gone up because of the popularity of brc tokens. You are right to say that the price of commissions will be lower when the bitcoin blockchain is not as busy as it is now. But for that we need improvements in the code.

el kaka22

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Just do it slower and there won't be a problem, too many people try to do it quickly and all the time which causes the trouble. There are way too many people who try to make it work one way or another and they are the real trouble here, they need to do a lot better in order to make sure that they are getting a good return. If you get money once every week and try to buy bitcoin once every week then yeah you are going to be hurt, and depending on the amount of money then maybe once every month as well.

However, if you could wait until you have decent amount of money, then you could do it then, which means that you need to learn to wait. Plus, it is not transaction to buy bitcoin at some exchange, so it shouldn't really be a problem.

Poker Player

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Quote from: OgNasty on December 21, 2023, 11:17:09 AM

Another day and the mempool is even more full. Currently it costs almost double what it did yesterday to get a transaction onto the blockchain. I had assumed this backlog would have been getting worked through by now but it is still getting worse. People are having to spend a great deal to get anything through the network right now.

Yes, it is. About 300 sats/vByte for confirmation in the next block, which affects those who do DCA, who if they buy small amounts have no choice but to reduce the frequency to reduce the proportional impact of fees, as discussed.

At some point the fees will have to come down, what we don't know is when. There seems to be a lot of retarded people with money willing to pay a lot to put their junk on the blockchain.

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Another day and the mempool is even more full. Currently it costs almost double what it did yesterday to get a transaction onto the blockchain. I had assumed this backlog would have been getting worked through by now but it is still getting worse. People are having to spend a great deal to get anything through the network right now.

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Quote from: taufik123 on December 19, 2023, 08:55:48 AM

Currently, it is not possible to use it as an everyday transaction because the gas fee required is quite large, and this network congestion makes the fee even higher.

It can be imagined that if bitcoin is used for daily transactions with fees that must be spent above $10 at least, people will be reluctant to use this kind of transaction.

Quote from: taufik123 on December 19, 2023, 08:55:48 AM

fee of 111.51 sat/vB, $6.8
Transaction status Waiting for confirmations 0 of 6
Queue: 17081 of 232792
Est. Time to 1 confirmation: in 1 day

Many people with transactions are stuck at the moment, they choose a lower sat / vB as a result the confirmation is long, if this is not for emergency needs then wait more patiently, because I was stuck in this transaction a few days ago.

Quote from: taufik123 on December 19, 2023, 08:55:48 AM

But actually not without a solution, the Bitcoin Lightning Network can actually be the right solution, but it is still under development and the support of the Lightning Network is also not evenly distributed on all exchanges because there are rules for using the Lightning Network.

Now that the bitcoin network is still under development, it is difficult for many people to switch to LN, some exchanges also set minimal deposits compared to the onchain network.

Quote from: taufik123 on December 19, 2023, 08:55:48 AM

But if you want to switch to altcoins to avoid network congestion, Options on ETH might be better or for faster and cheaper networks are BSC and TRON.

Actually, the ETH network is also expensive Gwei now $2, especially if you want to send tokens from the ETH network even higher gwei.
Because this is the DCA of bitcoin, it is impossible for them to switch to altcoins.

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Quote from: Davian144 on December 19, 2023, 06:26:00 PM

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

If you look at the timing, things are still not back to normal as usual because the prospect of Bitcoin movement began to increase after the previous decline and continues until this moment, I think the reduction in high transaction costs will occur if there is congestion and this is very relevant and fundamental because the problem of transaction congestion is often related to the capacity of the network itself.

Topic: High transaction fees affects those who DCA - page 4. (Read 1755 times)