Can only post here unfortunately.
Incidentally, the question on Reddit got a decent response:
- http://www.reddit.com/r/Bitcoin/comments/1b8i8q
Topic: Micro-transactions unfeasible due to rising BTC value and competitive tx fees? (Read 742 times)
March 29, 2013, 04:40:56 PM
Incidentally, the question on Reddit got a decent response:
- http://www.reddit.com/r/Bitcoin/comments/1b8i8q
March 29, 2013, 05:03:05 AM
Hi. I'm still a newbie on the forums, although I've been following Bitcoin since early 2011. Can only post here unfortunately.
I'm in the process of developing a Bitcoin side-project. We will mostly deal with transactions around $1 - $100. We take a cut of each transaction. The problem: with low value transactions (say $1), the cut we take doesn't even cover the cost of the 'minimun' transaction fee, which is 0.0005 BTC. This isn't of course, the "actual" minimum, but to stay competitive that's the least we should pay. We don't want users to wait for payouts due to us spending little transaction fees (and not getting included in blocks).
This will only get worse. If Bitcoin's value is going to rise even more, it will become even more unfeasible. Also, transaction fees will also become more competitive, especially if you try and stay ahead of the market and get faster transactions. Current 'dust' transactions of < 0.01 BTC is already worth something.
A solution would be to simply take a higher cut. But, we want to make this work as not only a great Bitcoin service, but also to compete against USD equivalent services. We should charge less than they are.
How is this going to be solved?
I'm in the process of developing a Bitcoin side-project. We will mostly deal with transactions around $1 - $100. We take a cut of each transaction. The problem: with low value transactions (say $1), the cut we take doesn't even cover the cost of the 'minimun' transaction fee, which is 0.0005 BTC. This isn't of course, the "actual" minimum, but to stay competitive that's the least we should pay. We don't want users to wait for payouts due to us spending little transaction fees (and not getting included in blocks).
This will only get worse. If Bitcoin's value is going to rise even more, it will become even more unfeasible. Also, transaction fees will also become more competitive, especially if you try and stay ahead of the market and get faster transactions. Current 'dust' transactions of < 0.01 BTC is already worth something.
A solution would be to simply take a higher cut. But, we want to make this work as not only a great Bitcoin service, but also to compete against USD equivalent services. We should charge less than they are.
How is this going to be solved?
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