Is BTC's high fees one reason why people trade with other coin "bases"?

jjacob

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Quote from: gedor on May 28, 2017, 06:14:01 AM

Actually people don't care about fees. This problem will be also solved ultimately.

A lot of people do. I certainly care about fees. High fees can kill microtransactions.
If I want to tip somebody a dollar, it doesn't make sense if I have to pay almost the same amount in transaction fees.

susila_bai

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I dont think that is the reason because as others have commented that it is not and trading with other altcoins is have been doing long before also. But now due to high transaction fees and delay in confirmation it is getting easier to do business with good altcoin and taking bitcoin as investment option

Emoclaw

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You were able to buy coins with coins other than Bitcoin directly long before Bitcoin's fees were an issue.
However high transaction fees have substantially increased the need to use alternatives, and therefore exchanges are adding more options now.
Another reason (which correlates directly to fees) is the confirmation time. ETH confirms much faster for significantly less. Bitcoin is simply too slow.

Red-Apple

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in a sense your answer is yes. bitcoin's high fees is one of the main reasons why altcoins were pumped!
it all started with that anyways. the bitcoin silly war about block size and then the spam attack that caused the big backlog and then followed by the mass adoption in Japan caused the high fees.

then began the altcoin pumps with the promise of "replacing bitcoin because it has high fees" but as we can see now they are getting dumped hard and those who were saying their altcoin will replace bitcoin are now logged off and are counting the money they gained from newbies.

and besides do you even know how terrible some of the altcoins are at scaling Cheesy

just_Alice

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Quote from: PokerFace3 on May 28, 2017, 10:50:58 AM

Quote from: just_Alice on May 28, 2017, 10:34:20 AM

Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

I was thinking about that lately. Suppose you have BTC on an exchange but you don't want to pay high fees so you exchange your BTC on LTC and withdraw LTC paying much less. But what's next? Almost nobody accepts LTC. You can't exchange LTC to your local currency, at least where I live you can't, although it's pretty easy to exchange BTC to our local currency here. So, what would be the next step?

You are coming with valid reasons. Only long term holders may look for other coins in the case you are explaining. I am also not having any services which will be accepting altcoin payments so that I could save tx fees.

Crypto users are already working on how to bypass long confirmation delay/higher tx fees. In services and in service discussions we are having more number of topics on viabtc accelerator and some paid accelerating services. This simply shows people are not switching over to altcoin just for the reason of higher tx fees.

Exactly. Switching to altcoins is possible only if people you are having business with also switch to the same altcoins as you for a long period of time. Otherwise you can't avoid the process of buying BTC with altcoins whcih will result paying those high fees anyway.

Pearls Before Swine

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Quote from: paramind22 on May 27, 2017, 09:08:33 PM

Seems like it's time to do more business with alts.

Agree 100%. If anyone is spending crypto to actually buy goods & services, something like dogecoin is ideal. Bitcoin right now, isn't. And it's because of the high fees. That's worse than a sales tax. It's like paying income & sales tax at the same time! Who wants to pay something like 12% or more extra just to buy something? I sure as hell don't. That defeats part of the purpose of cryptocurrency.

ethereumhunter

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Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

i don't think that people really cares about the fees for sending bitcoin into market exchanges because what i am doing is i only send for example 0.2 btc into bittrex, poloniex, liqui and else and i don't care about the fees because i am do it with my local exchanges and its no need to wait too long. i think if we can make nice profit in that exchanges, then the fees is really small depending with our profit so you don't have to worried about the fees.

jane418

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Fees and speed, this is what I care about personally. However, other than these, I think the exchanges have more reasons to have alternative coin bases.

Charloz24

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In my case I found transactions confirmations WAY too long with BTC, and can be a problem when you need to react quick in this volatile market.

PokerFace3

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Quote from: just_Alice on May 28, 2017, 10:34:20 AM

Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

I was thinking about that lately. Suppose you have BTC on an exchange but you don't want to pay high fees so you exchange your BTC on LTC and withdraw LTC paying much less. But what's next? Almost nobody accepts LTC. You can't exchange LTC to your local currency, at least where I live you can't, although it's pretty easy to exchange BTC to our local currency here. So, what would be the next step?

You are coming with valid reasons. Only long term holders may look for other coins in the case you are explaining. I am also not having any services which will be accepting altcoin payments so that I could save tx fees.

Crypto users are already working on how to bypass long confirmation delay/higher tx fees. In services and in service discussions we are having more number of topics on viabtc accelerator and some paid accelerating services. This simply shows people are not switching over to altcoin just for the reason of higher tx fees.

giveen

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Quote from: Getmon on May 28, 2017, 06:36:28 AM

Quote from: gedor on May 28, 2017, 06:14:01 AM

Actually people don't care about fees. This problem will be also solved ultimately.

I care about fees, So I use Ethereum more.

Well that's your opinion holding eth is surely profitable right now but you can't compare it with bitcoin tbh. If you already hold btc and use eth for making payments and stuff that's fine but i wouldn't recommend you to totally depend on eth for a long term profit as it can crash anytime while bitcoin will surely not crash for the next 10 years.

just_Alice

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Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

I was thinking about that lately. Suppose you have BTC on an exchange but you don't want to pay high fees so you exchange your BTC on LTC and withdraw LTC paying much less. But what's next? Almost nobody accepts LTC. You can't exchange LTC to your local currency, at least where I live you can't, although it's pretty easy to exchange BTC to our local currency here. So, what would be the next step?

aguila

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Yes the people that use BTC to send money around or to pay for small things doesn't want to pay the $3-5 fee. Also, the duration of the transaction doesn't help either

JeffBrad12

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Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

The bitcoin is not suitable to make a micropayment, But it's not the main reason for those to use altcoin as an alternative for bitcoin itself but those aimed the double or triple profit through altcoin and try to pump all of the altcoins.
All about profit. My though if there will a little percentage of bitcoin users that has used altcoin to be his alternatives solution for the bitcoin fees.

shanem

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It depends on how btc a trader is trading with. If you are trading with more than 1 BTC, you certainly won't care about the withdrawal fees which is usually between 10k to 50k satoshi. However, if you are trading with a very low amount, then btc withdrawal fees can be a significant percentage of your capital. Then you would trade with altcoins instead. For me, I value the liquidity in the btc market which cannot be unmatched by any other altcoin market.

spatifilium

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I am doing my transactions with DOGE,fee is cheap and transaction fast, so that I have no complaints here.
BTC fee becomes ridiculously high, for example for transaction of 5$ asking me 0.85$

BitcoinHodler

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Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high

believe it or not the withdrawal fees exchanges take is usually 20K-50K satoshi. you should check the withdrawal fees again and if they are taking anything bigger than this them move to another exchange. bittrex takes 20K.
the transaction fees for bitcoin is also about 60K to 80K which really isn't that much for a trader in altcoin market which has making 5000% profit for the past month unless you are trading with 50K satoshi

Quote

that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

these exchanges you saw such as cryptopia which have a lot of other base coins for their markets has been doing this for a very long time. so no that is not the reason.
and besides when you trade you are doing it offchain and will finally end up in bitcoin in the end so the transaction fees don't matter

Quote

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

nobody is stopping you Wink

Febo

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Quote from: paramind22 on May 27, 2017, 09:08:33 PM

I am in several exchanges and noticed a coin that I wanted to buy was in an exchange I'm not currently on. But the fee for sending BTC there is so high that I'm wondering if is this why some exchanges have different coins to buy and sell with? Like you can buy coins with LTC, Doge, Espers, etc.

Seems like it's time to do more business with alts. These BTC fees are very high for making small payments here and there.

Poloniex have lots of Monero markets. Monero transaction fees are low and you will get them credited in 10 minutes.

Getmon

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Quote from: gedor on May 28, 2017, 06:14:01 AM

Actually people don't care about fees. This problem will be also solved ultimately.

I care about fees, So I use Ethereum more.

gedor

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Actually people don't care about fees. This problem will be also solved ultimately.

Topic: Is BTC's high fees one reason why people trade with other coin "bases"? (Read 660 times)