So where does the .0005 fee go when it is collected?
To the miner lucky enough to find the hash and sign the block. Most mining pools currently don't share the fees with the workers but over time that will change.
Topic: How to avoid Bitcoin Wallet .0005 fee ??? (Read 7246 times)
To the miner lucky enough to find the hash and sign the block. Most mining pools currently don't share the fees with the workers but over time that will change.
So where does the .0005 fee go when it is collected?
To the miner that solves the block. We have fees to provide an incentive to miners, who ultimately are what run the network. Eventually, after the rewards diminish, the idea is that fees will be enough incentive for people to continue to mine, even if they only make a few coins for generating the block. Really, the fees aren't enough right now, and a while back (I don't know if people still do it) were mining 'empty' blocks without transactions to avoid fees, simply because it was easier.
Fees keep the network alive
Fees make transactions happen faster
Without paying the fees, Bitcoin will probably die in the future.
So where does the .0005 fee go when it is collected?
To the miner who mines the block (or pool that mines it)
So where does the .0005 fee go when it is collected?
You don't want to send a 50 thousandths of a bitcoin fee, that's about 0.0033 cents Dollars at the current rate (3.3 thousandths of a dollar)? 
I think you oops'd a little on your math there... 
When sending bitcoins back to yourself Does it matter if I use a new receiving address or not? (different from what I got the original small transactions to)
Not for the purpose of fee avoidance. Anonymity will be lessened further, that's about the only difference.
It takes me about 2 days to be able to move BTC after getting about 15 .1's in a row.
I know I know, it was to test my hot wallet setup though.
I know I know, it was to test my hot wallet setup though.
I set my client to pay .001 fee with every tx. I feel it's very little to pay to help the network... miners/pools 
True... except for one thing.
Most of the current pools, pool operator keeps all transaction fees & none goes to miners. only thing miners currently get (in a pool) is their share of mined, freshly generated BTC.
(the fees don't help the majority miners since so few are solo-mining)
If you send 1 transaction with multiple recipients that transaction fee would be hidden sorta
I set my client to pay .001 fee with every tx. I feel it's very little to pay to help the network... miners/pools
I set my client to pay .001 fee with every tx. I feel it's very little to pay to help the network... miners/pools
quit being so cheap.... you should set your client to pay the .001 everytime.....
Indeed, it is such a low value, but as we see here, people just don't want to pay an extra transaction fee. People want to feel it's free, even if it isn't. No wonder why hidden fees work so well.
Once someone told me about a psychological study some people conducted. They went to a grocery store and were giving away one subsidized chocolate bar for each person. You could choose among a "high quality chocolate" for $0.15, or the "low quality" chocolate (the brands were well known) for $0.01. Under this scenario, the majority of people would prefer to pay only 15 cents to the high quality chocolate bar.
Another day they repeated the experiment, but decreasing one cent from each price. So, $0,14 for the high quality chocolate, or the low quality chocolate for free. Results switched, most people preferred the free one.
I believe merchants and e-wallets would be more successful if they hide transaction fees from customers somehow. Merchants could get the free transaction and resend it, while paying a fee. E-Wallets could aggregate many transactions in a send-many and eat the fee.
But while bitcoind keeps this hardcoded fee policy, at least the "send free tx to merchant" will not always be possible.
One way that might be feasible to avoid fees would be simply to do this: send your entire wallet balance to yourself once in a while, particularly after receiving small amounts of coins, and then don't send out any coins immediately after doing so.
Sending your entire wallet balance to yourself is usually fee-free, because if you have a mix of older and newer coins, the age will be averaged out.
After you do that, outgoing transactions are usually fee-free if they not too close together in time, because if all your incoming coins are consolidated into a single transaction on the block chain, they'll mature to "fee-free" status the fastest.
Doing this sort of impacts anonymity, it makes your activity less anonymous on the block chain. As an example, this is how I do my Casascius Coin business, and I pretty much never pay transaction fees, although on the flip side, someone would probably have an easy time identifying all of my activity on the block chain. The funding of Casascius coins sticks out like a sore thumb on the block chain, and then from there, the rest of my activity is easily found. (That is, if I don't have a separate wallet that doesn't touch the one I use for my coins!)
Sending your entire wallet balance to yourself is usually fee-free, because if you have a mix of older and newer coins, the age will be averaged out.
After you do that, outgoing transactions are usually fee-free if they not too close together in time, because if all your incoming coins are consolidated into a single transaction on the block chain, they'll mature to "fee-free" status the fastest.
Doing this sort of impacts anonymity, it makes your activity less anonymous on the block chain. As an example, this is how I do my Casascius Coin business, and I pretty much never pay transaction fees, although on the flip side, someone would probably have an easy time identifying all of my activity on the block chain. The funding of Casascius coins sticks out like a sore thumb on the block chain, and then from there, the rest of my activity is easily found. (That is, if I don't have a separate wallet that doesn't touch the one I use for my coins!)
When sending bitcoins back to yourself Does it matter if I use a new receiving address or not? (different from what I got the original small transactions to)
Well it's still a fraction of what a bank would charge you, it goes towards helping the network.
I get it. I just assumed there was a way to avoid who would not save money when they can
You don't want to send a 50 thousandths of a bitcoin fee, that's about 0.0033 cents Dollars at the current rate (3.3 thousandths of a cent)?
I think you oops'd a little on your math there...
quit being so cheap.... you should set your client to pay the .001 everytime.....
You don't want to send a 50 thousandths of a bitcoin fee, that's about 0.0033 dollars at the current rate (3.3 thousandths of a dollar)?
okay so how long for .10 BTC?
Typo. Corrected my post. 
If I understand correctly there is a formula for calculating transaction fee's.
It's at the bottom of this page:
https://en.bitcoin.it/wiki/Transaction_fees
Code:
priority = sum(input_value_in_base_units * input_age)/size_in_bytes
It's at the bottom of this page:
https://en.bitcoin.it/wiki/Transaction_fees
0.01 BTC will need to sit in your wallet for about 10 days before it has aged enough to be sent without a fee.
okay so how long for .10 BTC?
One way that might be feasible to avoid fees would be simply to do this: send your entire wallet balance to yourself once in a while, particularly after receiving small amounts of coins, and then don't send out any coins immediately after doing so.
Sending your entire wallet balance to yourself is usually fee-free, because if you have a mix of older and newer coins, the age will be averaged out.
After you do that, outgoing transactions are usually fee-free if they not too close together in time, because if all your incoming coins are consolidated into a single transaction on the block chain, they'll mature to "fee-free" status the fastest.
Doing this sort of impacts anonymity, it makes your activity less anonymous on the block chain. As an example, this is how I do my Casascius Coin business, and I pretty much never pay transaction fees, although on the flip side, someone would probably have an easy time identifying all of my activity on the block chain. The funding of Casascius coins sticks out like a sore thumb on the block chain, and then from there, the rest of my activity is easily found. (That is, if I don't have a separate wallet that doesn't touch the one I use for my coins!)
Sending your entire wallet balance to yourself is usually fee-free, because if you have a mix of older and newer coins, the age will be averaged out.
After you do that, outgoing transactions are usually fee-free if they not too close together in time, because if all your incoming coins are consolidated into a single transaction on the block chain, they'll mature to "fee-free" status the fastest.
Doing this sort of impacts anonymity, it makes your activity less anonymous on the block chain. As an example, this is how I do my Casascius Coin business, and I pretty much never pay transaction fees, although on the flip side, someone would probably have an easy time identifying all of my activity on the block chain. The funding of Casascius coins sticks out like a sore thumb on the block chain, and then from there, the rest of my activity is easily found. (That is, if I don't have a separate wallet that doesn't touch the one I use for my coins!)
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