Topic: Is the high fee affecting the rate of adoption of Bitcoin? - page 2. (Read 447 times)

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).

We don't have data to back this up but I'm pretty sure transaction fee is a factor on which people may or may not buy bitcoin thus increasing or decreasing the adoption rate, but I'd say it is a least of our problem in blockchain, we don't need everyone jump on the blockchain.

Heck yeah, I transacted last month and the fee is high, I just look away and hit the button. lol.

Adopting bitcoin means adopting it is consequences, unlike banks that have a fixed transaction charges, bitcoin doesn't have it. We once saw a transaction that cost millions trying to transfer such insignificant amount, a heartbreaking story, the sender must have not seen it. I guess, seasons have changed a lot, you can't just buy and sell whenever you want it.

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.

Unfortunately it does affect it, but maybe it's the evolution from a payment system that it was supposed to be into a store of value and an investment asset.

Different people see bitcoin in a different way. In 2012-14 most people were talking about it being money. You had that list of stores that accepted bitcoin, you had bitcoin acceptance maps where you could place your business, every time a coffee shop opened with a bitcoin sign people were excited, but it started slowing down in 2017 and 18. Hash wars pumped fees to incredible levels, you had 20k bitcoin for the first time, people were more interested in how much this thing could be worth one day than in buying a burger for it. We all knew it's not going to be decentralized money that becomes a reserve currency, like some people had hoped.

Fees are mainly affecting small investors, people facing 100% inflation who wanted to use it instead of fiat money. It also affects self-custody. When you earn $100 a month and want to put some of it aside in bitcoin, you're not going to pay $10 in fees to move it to a hardware wallet.
People like Michael Saylor don't care because they move $10 million in bitcoin and pay $10 to do it, but when you want to move $10 or less you have a problem.

Yes, many investors have turned away from it due to its high fees.  If it increases further it will definitely have an effect on it.  If it is phased properly and the fees come down and it is nice and convenient then I think the number of investors will increase on it.

I think if we're going to see this continue dropping in the fees, there is a chance that we might go back to what it used to be. The hope is still there for the majority of us because we've seen this happen before. As someone who believes that things are going to calm down and will be better again, I understand that we have to take these high fees and I think that we're good enough and likely survived that era but if it ever happens again somewhere in the future.

It's going to be something that just happened before and that's a usual thing that we've encountered already. Although the high fees IMO really affect the adoption, as long as Bitcoin remains the top asset and cryptocurrency, that won't change the fact that every investor likes it and no one's going to stop from adopting it. Now, with all the SEC and ETF approvals and rumors about it, this makes it even stronger and more adaptable.

And for that fact, there are alternative options that we can use like the altcoins or any other layers that have cheaper fees where the speed is quicker. I guess that we're getting closer to the time that Bitcoin is transitioning into being an actual store of value and not anymore with payments.

Definitely, the increase in Bitcoin transaction fee negatively affect the adoption of Bitcoin.  We all know that Bitcoin is created to be used as payment system but if the transaction fee is too expensive, I do not think the masses will like that.  Instead of adopting Bitcoin, they might evade it to use in their daily transactions.

Majority of people does not really care about centralized or decentralized payment system, what they care is that the have the freedom to make a transaction in a minimum possible fee.  After all people loves to have discounts and is very happy if the made a transaction at a lowest fee available.  

Another thing, the uncontrolled fluctuation of fee also scares users.  I also think for Bitcoin to be fully accepted by masses, the developers should work on the transaction fee system and make it align to what the masses are looking for.

Yes of course, and mostly the individual investors and businesses and in recent days after when the Central Bank of Nigeria unbanned Bitcoin I have seen many people that were interested to invest in Bitcoin and some of them wanted me to sell it to them but I could not pay the transaction fee and they could not pay the transaction fee so we left the deal. And when come to businesses customers can't pay the high fee to purchase their goods so fiat currencies were used to make the transaction. So the hike of the transaction fee affect the individuals and businesses more.

According to o_e_l_e_o the core issue of the transaction fee can't be removed and you can see it here

At this moment fees has come down than what it was earlier but yes higher transaction fees doesn't have a negative impact on Bitcoin adoption rate, anyone who is going to use Bitcoin for it's services like P2P transfer will be hesitant to pay high charges. This is not the case throughout the year but still it's not a good sign when the charges cannot be justified for smaller transactions. Those who out there advising not to make small transfer don't understand the concept of Bitcoin and yeah we can avoid such transfers for a while until the transfer fee comes back to normal but that's not the permanent solve.

High transaction fees as a result of network congestion in the past was attributed to the scalability challenge of Bitcoin. But this time around, we are seeing something new, an outright attack on the Bitcoin Network. This shows there is a vulnerability the Bitcoin devs have to work on to resolve. If nothing is done about the high fees, I'm afraid that Bitcoin adoption will be heavily impacted because it does not just make sense paying high fees for small transactions.  To make Bitcoin more usable,  it must stand out as the best option, high fees does not align with this one bit.

Of course the high rate and value of Bitcoin will affect its abduction because many people that have the intention of purchasing or investing in Bitcoin if the person is not too financially strong might not be able to purchase as much Bitcoin as he/she  plans or wanted to but can only be able to purchase or invest in minimum quantity of Bitcoin.




Considering how the value of Bitcoin just elevating up and down, it must affect the daily transaction of Bitcoin because many Marchant, investors and intended investor must have to have a rethink on how they transact Bitcoin and lessen the day to day transaction for financial purposes and lose threat of their capital and have to be cautious on how and when to trade.




Just also like one of my friend that introduces and thought me all I know  about Bitcoin had to buy an alternative coin that he heard about through another friend on how the coin has been elevating up for days and after which he purchased it, it turns out that the coin started elevating down and down until he decide to sell it, because of how the value of Bitcoin is presently in the market and had to loose a lot of money just as to run away from the elevation of the value of Bitcoin.

Bitcoin, and crypto generally, simply has no chance of becoming a mainstream means of payment due to its architectural limitations. The very fastest/cheapest systems even on the drawing boards are still 1000x too slow/expensive to compete with credit cards and banks.

They've beat on this problem for over 10 years and have dumped millions of dollars and thousands of experts into the problem, so I think it's safe to say they aren't going to solve the problem, ever.

The good news is that people still love crypto as a speculation instrument. Bitcoin is over $40k right now, so people obviously don't care whether it's going to be used like a real currency.

People should stop trying to pretend crypto is something it's not, and celebrate what it actually is.

The fees right now are at the ~40-~50'ish sat/vB, and it's low already compared to where it was a few weeks ago where we are seeing the fees at nearly 200 sat/vB.
On the other hand, the current amount of fees in USD right now is around $2.8 which is kind of high compared to where it was before the ordinals became popular where we see the fees as low as $0.50.

As for the merchants who are accepting Bitcoin, I guess they will find another way to at least integrate cryptocurrencies into their small businesses like accepting altcoins that have a low transaction fee because I'm pretty sure the buyer will not shoulder those high gas fees, and they would rather pay it through cash. As for my investing in Bitcoin, TBH, I stopped buying it and focused more on altcoins. My allocation of Bitcoin in my overall portfolio is more than 50%, and I feel that's enough for me so I am focused on altcoins now. As for the gas fees affecting the rate of adoption, I think that there might be a small effect, but I guess there will be some that will just live through it, and will just accept it even with high gas fees.

BTC is more of an asset now than a currency because of the ordinals, and I don't see any changes happening in the foreseeable future unless will be eliminated which is not possible.

It is crystal clear that the transaction fees has triggered petty crypto investors to diversify their incumbent crytop coins to other crytop coins troubleshooting all to the vail to minimize the rate of their transaction fees.

Someone said it is economically advisable to accumulate a huge amount of coin before selling so that the transaction fees could be manageable. I think that would be so sentimental because it is assumed that a petty Investor would either not sell its coins at its desired time or else encounters the frowning transaction fees conditionally with no remorse benefits of their labours.

Since there are alternative I don't the high transaction fee of Bitcoin would have any significant impact on it adoption truly the network is highly congested due to massive transaction of ordinals of course new project developers would alternate to other fast and cheaper network with faster transaction likewise small investors, there are other alternative cheaper network and I believe the issue of Bitcoin network congestion would be addressed accordingly probably with improve lightning network that issue would solve the problem but for investors would have to continue transaction with high fee and wait a bit longer for their transactions to be  confirmed.

With bitcoin transaction fees increasing in recent weeks, this will certainly have a negative impact on bitcoin's progress. The reason is, quite a few bitcoin investors have small capital which will certainly hinder them from investing because the transaction costs are quite expensive. Therefore, if bitcoin transaction fees are expensive it will definitely have an adverse impact on small investors.

it is a challenge for bitcoin to be adopted by more people around the world, because high fees make it difficult for people to carry out transactions and it makes them switch to other networks that have fewer fees and are less congested. but perhaps because adoption by institutions or large investors makes more people interested in using bitcoin as an investment, not for transactions in general. so we can conclude that even though the fees are high it hinders the adoption of bitcoin, but people are still interested in adopting bitcoin as their investment.

Every time I withdraw my income in crypto, it always pops up and gives a warning about the fees I use  --50% higher, 40% higher. Frustrating is really what we feel but should we have another option if layer 2 is not supported on our receiving wallet? We don't aside from waiting for it when it drops a little, at least we save some.

Good thing that congestion these days isn't as bad as in the past days, we can transfer our funds at $3-4, which seems acceptable for now. But still, the majority, especially for small investors want to get back to normal where can just spend less than $1 on its top priority.

I think the same as you, because the investment should not be affected, because it consists of buying and putting in our wallets, or our wallet, in fact the investment in bitoci does not mean that we are constantly Withdrawing money , that is not what is Sought The only way to be Able to do Something like this is that it can be Exchanged for Another Currency or something like that for USD, but I Consider that the high transaction rates for bitcoin is because it is also a fact that something very big will be sold, everything is so that things are improving for Bitcoin and great profits can be made, it is a fact that this will be the case , for that reason we as People who are lovers and defenders of Bitcoin must give the security and Confidence that this is due to the Congestion and that a Moment or at some point it will happen.

For these reasons we Must be patient , if we are Also in a very Good Position for the Hodl, there is nothing else to see but that , what they want to sell because they already have to assume their rates, but selling is not an option now.

Anyone that wants to invest in bitcoin shouldn't be discouraged by the high transaction fee because he should think of hodling for a long term before selling, so that the high transaction fee wouldn't be a barrier for him of getting started. The high fee is temporary and will not be permanent. However, it has being a problem for people to use bitcoin the way they like and some people are staying off from using bitcoin for purchase of goods and services. If the fee did not come down, there other altcoins will be commonly used as a payment method, while bitcoin will be used more as a store of value. This means that we might still be trapped under centralized payment system, where the government will know about every transaction that you do daily.