Is the high fee affecting the rate of adoption of Bitcoin?

legiteum

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Quote from: thecodebear on January 06, 2024, 09:20:51 PM

Uhh I don't think you have a very good grasp on what Bitcoin is if you're calling it a meme token lol. Bitcoin is a hard currency, plain and simple. There are plenty of meme tokens out there, they're a dime a dozen, and that's completely different than what Bitcoin is. If you can't tell the difference between a meme token and Bitcoin you probably shouldn't be in this space until you learn A LOT more about bitcoin tbh

Well, maybe "memecoin" wasn't the word I was looking for. You can call it whatever you want, but it's not used as a mainstream means of transactions and never will be, based on its technical limitations. That means cryptocurrencies will be solely used as investment instruments and since there's no other tangible value associated with them it will come down to their name/brand/meme/reputation/etc. Bitcoin has obviously got the biggest brand name in crypto, followed by Ethereum, etc. etc. and their market caps reflect that.

This entire thread, to me, seems to be mostly about people worrying about a problem with Bitcoin and crypto generally that nobody actually cares about, and nobody has any reason to care about. Bitcoin is slow and expensive to transact in, and with a $860B market cap, I think it's safe to say that this is unimportant to investors, that's all.

thecodebear

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Quote from: legiteum on January 06, 2024, 03:39:29 PM

I've been trying to understand the situation better here, and I think I have figured it out.

1. Crypto's lack of suitability as a mainstream currency has never been an impediment to crypto investors, who simply don't use the product that way.

2. But crypto's story involved Bitcoin et. al. being a "real currency" that can be used like traditional ones.

3. Hence the reality that it's never going to be a mainstream currency seems to detract from the mythos around crypto for many people.

4. People think of the "myth" about crypto dies, then, I guess, they think fewer people will buy Bitcoin, and... the price will go down.

If that's what people are holding onto, I would advise them to drop it, and to get real. Treat Bitcoin and the rest of the cryptos for what they really are, and celebrate that rather than hiding from it.

Bitcoin and the rest of the cryptocurrencies are "meme tokens". There's nothing wrong with that, and it's a new thing in the history of capitalism that we can invest in pure memes, and this idea is not going away.

Stop trying to pretend that cryptos are something they are not...

Uhh I don't think you have a very good grasp on what Bitcoin is if you're calling it a meme token lol. Bitcoin is a hard currency, plain and simple. There are plenty of meme tokens out there, they're a dime a dozen, and that's completely different than what Bitcoin is. If you can't tell the difference between a meme token and Bitcoin you probably shouldn't be in this space until you learn A LOT more about bitcoin tbh

Jegileman

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Quote from: Hatchy on January 04, 2024, 07:09:42 PM

As these challenges persist, there's a growing worry that Bitcoin may be viewed more as a store of value than the revolutionary payment system envisioned by Satoshi Nakamoto. If high fees become a recurring issue, the risk of hindering Bitcoin's adoption as a medium of exchange is a real concern. I'd love to hear your thoughts on whether you believe the increase in Bitcoin fees has affected its adoption negatively or enhanced it rather.

The price increase have had a very strong impact on the adoption of bitcoin because even in the forum, it has become a topic of discussion with many members showing dissatisfaction about it. When you look at this case, you’ll notice that the holders of bitcoin that have embraced its use and understand its function don’t look remorseful to leave the system.

If you understand the system better and how it functions, the high transaction fees will only be a negligible concern for you. If bitcoin should be seen more as a store of value, it is still okay and those that can still use it for exchange, they’re very much in cool with that too. What is important the most is that the adoption should not stop and people should come and embrace this new technology that will make you financially independent.

Obari

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I was reading few comments and I must say that almost everyone was right from their perspective of view but I think this high transaction fee is giving more wrong impression of bitcoin to much especially the newbies and that will impair that interest in wanting to buying and that alone will go a very long way to tarnishing the reputation of bitcoin but whatever the case is, I think we should be more bothered on how soon this will end

The Cryptovator

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Another example of how Bitcoin transaction fees are affecting adoption is signature campaign payments. One of the reputed campaign managers was also concerned about it. If transaction fees are lower, it takes more than a week to get confirmation on the blockchain. Participants are working the whole week, and payment is going to be delayed only for transaction fees. So if that continues, it is likely managers will choose alternative payment methods. However, though it's not a big deal, we can use it as an example of how transaction fees affect Bitcoin adoption.

Baki202

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The way the Sat was fluctuating between 100 and 280 Sat/vByte was, to some extent, really frustrating. I was particularly upset since, at that time, I had already transmitted my bitcoin from my wallet using 80 Sat/vByte, and it hadn't dropped till four days later. and even searched for a way to use viaBTC to speed up the transaction, but they were informed that they were no longer providing free acceleration because too many individuals were abusing that service.

I concur that the situation won't affect those who are interested in adopting bitcoin because they understand that circumstances like these cannot be avoided and that, for those who are knowledgeable about the platform, fees and mempools shouldn't be problems. For this reason, before adopting bitcoin, one should always conduct research because many users are unaware of mempools. because they place an excessive amount of trust on trades.

DaNNy001

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Quote from: Queentoshi on January 05, 2024, 02:58:55 PM

Quote from: Hatchy on January 04, 2024, 07:09:42 PM

With the recent spike in Bitcoin transaction fee, it's evident that these fluctuations are significantly impacting the adoption rate of Bitcoin.

Bitcoins has widely been advertised as an asset to invest in, that is to buy and keep and that is what is attracting many people to it as investors. Many of these investors do not yet see Bitcoin as a currency to transact with daily so they are not worried or have to be bothered about the high transaction fees that will be a big discouragement to people who use bitcoins as currency right now. Adoption of bitcoins is still happening and will keep happenning as more seek for what to invest in, and the best investments to have asides properties (real estate).

No doubt that Bitcoin adoption is still ongoing and I also understand that the major cause of this is because of the investment opportunities that people see Bitcoin as, well I still say that this high fees still hinders that part too although if not all then a little portion of the adoption because just image a situation where I want to buy Bitcoin and hold it and I obviously use an exchange to buy and accumulate then I will be needing to send the coins out right? So in trying to send my coins to an exchange and I pay this type of high fee don't you feel I will be discouraged or try to find an uteriour next time.

legiteum

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I've been trying to understand the situation better here, and I think I have figured it out.

1. Crypto's lack of suitability as a mainstream currency has never been an impediment to crypto investors, who simply don't use the product that way.

2. But crypto's story involved Bitcoin et. al. being a "real currency" that can be used like traditional ones.

3. Hence the reality that it's never going to be a mainstream currency seems to detract from the mythos around crypto for many people.

4. People think of the "myth" about crypto dies, then, I guess, they think fewer people will buy Bitcoin, and... the price will go down.

If that's what people are holding onto, I would advise them to drop it, and to get real. Treat Bitcoin and the rest of the cryptos for what they really are, and celebrate that rather than hiding from it.

Bitcoin and the rest of the cryptocurrencies are "meme tokens". There's nothing wrong with that, and it's a new thing in the history of capitalism that we can invest in pure memes, and this idea is not going away.

Stop trying to pretend that cryptos are something they are not...

Crypto Library

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Since even if you want to do Bitcoin adoption, you have to make a transaction, of course, there will be a transaction fee, in that case, the high fee must affect those of us who are small bitcoin adopters however, the things will be different in case of whale adopters and the long-term holders.
But I personally figured out a way, if you are a small adopter like me, then I think you can continue your bitcoin adoption through p2p trading directly with fiat currency using exchanges like Binance or ku-coin. Because the problem of these high fees of bitcoin is not always there, when the situation of memepool will be normal again, you can go back to the as usual system and also the fund can be transferred from cex to a decentralized wallet

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someone703

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Not every transaction needs lightning speed. For larger sums or long-term holdings, the security and immutability of the main chain remain paramount. Think of it as a digital bank vault, where you store your Bitcoin for the long haul, safe from the market's whims.

So, while fees may not be a immediate concern for many retail investors right now, they are a crucial piece of the puzzle for achieving widespread Bitcoin adoption. We need a multi-pronged approach – scaling solutions like Lightning, specialized side chains, and continued development of the main chain for larger transactions.

thecodebear

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Quote from: Hatchy on January 04, 2024, 07:09:42 PM

With the recent spike in Bitcoin transaction fee, it's evident that these fluctuations are significantly impacting the adoption rate of Bitcoin. While there has been a temporary reduction in fees, the underlying issues leading to the initial spike remain unresolved, raising concerns about the sustainability of the current fee levels.

Just as I replied on this thread bitcoin fees and how we accept its volatility, The period of high fees left many small investors frustrated, prompting some to explore alternative cryptocurrencies. This shift in investment preferences might hinder Bitcoin's broader adoption. Businesses that once embraced Bitcoin payments may have reconsidered due to elevated transaction fees, opting for alternative payment methods. This shift not only affects merchants but also the perception of Bitcoin's viability for everyday transactions.
Personal experiences, like my friend's decision to postpone investing in Bitcoin due to high fees, highlight how potential investors might alter their plans. The longer fees remain a concern, the more likely individuals are to explore other investment options. The extended period of elevated fees has forced many users to seek alternative means for their daily transactions, detracting from Bitcoin's intended role as a practical medium of exchange.

As these challenges persist, there's a growing worry that Bitcoin may be viewed more as a store of value than the revolutionary payment system envisioned by Satoshi Nakamoto. If high fees become a recurring issue, the risk of hindering Bitcoin's adoption as a medium of exchange is a real concern. I'd love to hear your thoughts on whether you believe the increase in Bitcoin fees has affected its adoption negatively or enhanced it rather.

I find your description of "there has been a temporary reduction in fees" a strange way to put it considering that the spikes in fees are in fact what is temporary. People freak out for months any time fees spike for like a week. Look at the past year, the vast majority of the time fees have been $3 or less, and they are now back to that normal fee amount. It's the expensive fees that are always temporary, not the "reduction" which is the norm.

And I doubt occasional short-lived high fees affect the market much. You don't have to pay tx fee to buy or sell bitcoin, and anyone can easily just wait till they've bought a bunch of bitcoin to move it off-exchange and pay all of the normal $3 fee, it's not really a big deal for the vast majority of people. It's only an issue for people who are trying to use bitcoin to buy things, which let's be honest, is a miniscule amount of people, and that's the use case for the LN anyway.

Yamifoud

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Quote from: jrrsparkles on January 05, 2024, 01:50:26 PM

I won't say retail investors are bailing out from Bitcoin due to durge in the transaction fee but it made them freeze their funds wherever it is unless they pay the fee which is really absurd of any kind. Since yesterday the fee actually dropped 10 times lower than its peak but the cause still exists and it can clog the network pretty bad at any time soon.

That to soon be over I guess but in the situation where fees are too high, that stopped people from using this as a payment option.
We can't say how big the impact on the adoption but to clear to us that it was not the thing we wanted to happen in the crypto space as it will help the crypto users to still use fiat money.

Good thing to see that the fees are dropped but still not convincing enough for a user to pay $2-3 compared to just paying a few cents.
If the situation stays long, I don't think it is reasonable to consider Bitcoin as a currency.

Volimack

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While this may seem like a problem for small investors there are many large Bitcoin investors who don't mind the high fees. The reason why Bitcoin fees have increased is because Bitcoin is a higher investment than it used to be so the fees have increased. Bitcoin transactions are not slowing down. Bitcoin is processing more transactions on average than it is worth despite the significant drop in value in recent months.

kryptqnick

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Bitcoin fees and scalability are a challenge to global adoption in general, but I don't think there's a strong correlation between adoption rate and fees when it comes to particular episodes of fees spiking. Sometimes the fees actually go up because people get excited and are trying to use Bitcoin more than before. Sometimes it's people using Bitcoin blockchain for their own weird purposes (like Ordinals), but again, it's not an indicator of adoption slowing down or decreasing.
Even when the fees don't get particularly high, they're too high for small purchases, considering that there are often no fees (for customers) with fiat payments using debit cards. But Bitcoin can still be useful if we consider 2nd-layer solutions, and if we're talking about big purchases where the fees make up a small percentage of the total payment.

anushkasachith888

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High transaction fees can affect the adoption of Bitcoin in several ways:

Deterrence for new users: High fees can discourage new users from adopting Bitcoin, as they may perceive it as an expensive investment option
This can lead to a slower growth in the user base and hinder the widespread adoption of Bitcoin as a medium of exchange

Reduced daily transactions: The high fees can force users to explore alternative means for their daily transactions, detracting from Bitcoin's intended role as a practical medium of exchange

Increased interest in layer 2 solutions: As transaction fees increase, users may seek alternative solutions like layer 2 networks to reduce costs and
improve transaction processing times. This can lead to a shift in focus from the main Bitcoin network to layer 2 solutions, potentially affecting the overall adoption of Bitcoin.

Price sensitivity: High fees can make Bitcoin less attractive to potential buyers, as they may be more sensitive to the cost of purchasing the cryptocurrency.
This can lead to a decrease in demand and, consequently, a drop in the value of Bitcoin

Innovation and competition: High fees can drive innovation and competition in the Bitcoin ecosystem, as developers and miners seek ways to reduce costs and improve transaction processing times. This can lead to the development of new technologies and solutions that may affect the overall adoption and usage of Bitcoin.

Despite these challenges, Bitcoin's adoption has continued to grow, with on-chain data indicating a new yearly high in Bitcoin adoption, reaching 67.62%
This suggests that, despite the high fees, growing optimism and adoption of Bitcoin have persisted.

0t3p0t

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Quote from: Hatchy on January 04, 2024, 07:09:42 PM

As these challenges persist, there's a growing worry that Bitcoin may be viewed more as a store of value than the revolutionary payment system envisioned by Satoshi Nakamoto. If high fees become a recurring issue, the risk of hindering Bitcoin's adoption as a medium of exchange is a real concern. I'd love to hear your thoughts on whether you believe the increase in Bitcoin fees has affected its adoption negatively or enhanced it rather.

Of course it has negative effects or impact as it may serve as a barrier or it puts limits to all our transactions. I was one of those who are affected with the current high fees to be honest and it's not a good thing.

CryptopreneurBrainboss

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Quote from: Hatchy on January 04, 2024, 07:09:42 PM

Personal experiences, like my friend's decision to postpone investing in Bitcoin due to high fees, highlight how potential investors might alter their plans. The longer fees remain a concern, the more likely individuals are to explore other investment options. The extended period of elevated fees has forced many users to seek alternative means for their daily transactions, detracting from Bitcoin's intended role as a practical medium of exchange.

I don't get it when investors postpone their plans to invest in Bitcoin because of the fees, are they active traders that they'll be interacting with the market daily to be that concerned about the fees. Sometimes I wonder the type of Investors that are getting attracted to Bitcoin are they that cheap because I can remember when using Ethereum was as costly as hell yet Ethereum was still attracting investors to buy NFT and other assets on the Ethereum Blockchain and they still paid those high fees.

The fees were higher than what we're experiencing with Bitcoin and the so called Bitcoin investors can't pay a one time fee to buy Bitcoin and hodl. Those people aren't serious about investing because if they were serious, a one time fee shouldn't stop them because they can make profits that'll give them back their fees and more

Quote

If high fees become a recurring issue, the risk of hindering Bitcoin's adoption as a medium of exchange is a real concern. I'd love to hear your thoughts on whether you believe the increase in Bitcoin fees has affected its adoption negatively or enhanced it rather.

I don't like the high fees and have my concerned like everyone else, the high fees will only make Bitcoin affordable to the elite of the world (the rich) which goes against all what Bitcoin stands for. The high fees mightn't affect the adoption of Bitcoin but it'll centralized it to only those that can afford it by paying high fees.

The Cryptovator

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Due to higher transaction fees, Bitcoin will be ignored as a payment method. Bitcoin was popular to make payments where crypto was accepted and users didn't want to use their cards. Even I am disappointed to have made payments through Bitcoin lately. So those merchants accepting Bitcoin as a payment method will lose their Bitcoin customers. That's why businesses will ignore Bitcoin as a payment method.

Hyphen(-)

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Quote from: Hatchy on January 04, 2024, 07:09:42 PM

As these challenges persist, there's a growing worry that Bitcoin may be viewed more as a store of value than the revolutionary payment system envisioned by Satoshi Nakamoto. If high fees become a recurring issue, the risk of hindering Bitcoin's adoption as a medium of exchange is a real concern. I'd love to hear your thoughts on whether you believe the increase in Bitcoin fees has affected its adoption negatively or enhanced it rather.

The high bitcoin transaction fee is not affecting bitcoin adoption because many people who are willing to adopt bitcoin and have done some research on it will know that this transaction fee hike is just temporary and not something permanent; therefore, they will invest in bitcoin like that using the DCA method and ignore the fee.

Moreover, it will not affect adoption because some people are just using centralized exchanges to buy, trade, and sell their bitcoin. Since the fee is high for now, they can decide to buy and hold their bitcoin in their exchange wallet pending until the time the bitcoin transaction fee is reduced. Although it is not advisable to hold bitcoin in centralized exchanges because of trust and "not your keys, not your coins," you can hold it there temporarily.

hatshepsut93

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There are different types of adoption. It certainly hurts Bitcoin's viability as an online currency for purchases. Although 10 minutes to get at least 1 confirmation is another major problem for that. But for investing, which is I believe is the most common use case of Bitcoin, high fee doesn't matter as much if it represents fractions of percent of your investment. But even for small investors who invest like a $1,000 paying $20 fee is still worth it because they could double their money if they invest before the bull run.

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