Topic: Miners Benefitting from the High Fees? (Read 144 times)

if you have no urgent needs to convert your btc into other alts or currencies, then maybe you can hold off your transactions. if you do accept btc payments in your business, do you convert it right away? because maybe this is crucial time not to.
in terms of miners benefitting from this situation. of course they are. if you look at the total fees received by the pools per block that's a lot of BTC. but of course they need to share it with the miners in their respective pool. this is like the golden times for them, let them earn their rewards.

The transaction free is the most deciding factor of the money flow into such money.The increase on the bitcoin into market will leads to the demand to the bitcoin.The benefit person will the miner as the part of the transaction.When the transaction fee is high,the good move will be do of the savings.For the receiver end,it’s essential one.The coin must be in some exchange,if you need to transfer the money.You can ask your client to exchange and send that coin to avoid of loss.Over a period,the mining became a non profitable one,because of the invention of Binance smart chain,tron networks.Most traded one was usdt based on the tron network,now it’s the time of bitcoin miner to earn some profit for the long holding bitcoin from mining.

Sure, I did it today for like $9.8. Yesterday, I couldn't take the risk of paying about $30 in transaction fees; it was way too much. I had to cover a whole lot of transaction fees for about four of my customers who were paying me with Bitcoin yesterday because, in my business, I do accept Bitcoin payments.

Miners don't just earn from the blocks they mine but from the fees as well. Obviously they benefit from this congestion, business thriving this way and they could chose which transaction to prioritise especially the ones with higher fees.

They are probably the ones selling right now for they also know prices will drop.

Well yeah you should not have been trying to make a tx yesterday! The fees spiked way up for like a day or two and now have come back down a lot, back under $10 today. Never make a transaction during a spike unless you absolutely have to. But at least you went for a low transaction fee and it failed, now you can do it again today and get it through for just a few dollars.

Hopefully by the time the bull run comes NFT people will go back to Ethereum and random altcoins for that nonsense, and hopefully this bitcoin meme token craze that I guess is happening right now will fade away. The past two bull markets fees peaked for a little bit over $50, and if we have to account for a bunch of useless stuff like tokens and NFTs crowding up the valuable block space then yeah it's likely fees will go over $100. If these sorts of silly things on Bitcoin continue I'm just hoping the bitcoin devs actually push for and implement a fix to stop these sorts of valueless data spam operations from taking place on Bitcoin. If people want this stuff on Bitcoin so bad do it on a side chain of a L2, it doesn't belong in bitcoin blocks.

Yes it looks like there was a spam attack happening on Sunday and Monday, though it seems to have mostly subsided by today. Still, ordinals and i guess these brc-20 token things and perhaps some other reasons are still causing fairly high prices that we've seen since the start of the month, $6-$9 fees instead of $2-$3 dollar fees that the network had since ordinals started a few months ago.

As to your question of whether this is an attack or it is good for miners. Those things are not mutually exclusive. Miners get paid more anytime tx fees goes up, doesn't matter whether its a spam attack or something dumb like NFTs and tokens, or just higher usage of bitcoin, they get paid more when blocks are full and people are trying to do stuff on bitcoin. So NFT jpegs, meme tokens, spam attacks, yes all these things are good for miners and bad for bitcoin at the same time because they crowd out actual monetary use of Bitcoin for stupid useless fad stuff. It'd be like if someone figured out a way to take over Apple's manufacturing plants to make beanie babies instead of computers but paid the workers more...sure good for the workers (miners in this case), but bad for all actual users. And while miners love high tx fees, mining is a thiving business so they are doing just fine without this spam on the blockchain. Just look at hashrate, it was continually rising all through the bear market as weaker operations got knocked out and stronger operations expanded, thus making mining more efficient.

I would be surprised if there were still pool owners keeping the block fees but I guess it is possible. I know before pools got super competitive it was a thing.

I agree that these are clearly valid transactions and the free market fee structure is working as intended. I wonder if your opinion on future “trash” would also include the Lightning network when looking backward. I think either developers want to allow for things like Ordinals and the Lightning network or they don’t. They shouldn’t get to pick and choose who utilizes the blockchain for what.

Every day, there are always thousands of transactions going on on the Bitcoin blockchain. I have tried to trade during the weekend, but the fee just seems a bit low, but not really too low. This is really the first time I've encountered this hash fee issue on the Bitcoin network.

Based on you quote @OP, I don't think this high fee will do any good to Bitcoin like increasing security on the network; rather, miners are just greatly rewarded, and based on what @zanezane has said, when the fee gets so high, people might just pause a bit in carrying out transactions.


A few days ago, a friend was talking about investing Into   transaction fees because he thinks that during the forthcoming bull market, transaction fees will shoot up. Now that we are not yet in the bull market and Bitcoin transaction fees have gone so high, how about if the bull market comes? That means we might see $100 in transaction fees to spend about $200 worth of BTC (I think it will not get to that extent). I tried to send out $70 worth of Bitcoin, and the transaction fee I was supposed to pay is $30. I couldn't pay that much, so I just had to reduce the fee to $2, and after like four hours, the transaction faild.

You are very correct my friend and that has been the case ever since with me because I have tried to sell some coins and the fright of the huge fee has kept from selling because its rather extorting and coin wasting for me to make such payment and I definitely know  am not the only one affected here because I decided to convert the btc I need now to usdt and send it through another channel which has lesser fee and this is exactly what you stated in this reply of yours which clearly show that  am not the only losing here the miners are also affected because the fee has started pushing possible customers to different channel which reduces their over all transaction volume and by so the revenue generated is also greatly affected.

You mean they only share the block subsidy instead? Block reward is block subsidy plus the fees.

You're not in the favorable position to define what's real and what's not. Nobody is. Only the protocol. And according to the censorship-resistant protocol, they are valid. As for the exploit, this particular issue is beyond exploits. OP_RETURN is neither an exploit, and ordinals / NFTs / some future trash can work with it as well.

Yes, these are major problems for some users, but in my opinion, miners are benefiting from the congestion in the mempool because I have observed several transactions that take more than a day to confirm. I read something by Hhampuz in which he described how much money he had to spend merely to have his transaction confirmed. Which astonished me since I assumed it would be very challenging for him to meet with his participants and yet it would still take some time for those transactions to be confirmed.

I think there are other ways that miners could benefit from high fees in cryptocurrency like. Mining rewards are paid out in the form of newly minted cryptocurrency and transaction fees. When transaction fees are high, miners earn more revenue per block they mine. This can incentivize miners to prioritize transactions with higherfees, leading to longer confirmation times for transactions with lower fees. also, high transaction fees can make it more profitable for miners to continue mining, even if the overall network has lower transaction volume. This can help to maintain network security, as there are still incentives for miners to continue validating transactions.

However, its important to note that high transaction fees can be also a double edged sword for miner. If fees become too high, it can drive users away from using the network, reducing overall transaction volume and therefore reducing the revenue earned by miners.

More specifically, it will benefit those with high hashrate. Those who have a high hashrate have a greater chance of being able to get a higher reward compared to miners who have a low hashrate. But to be honest, I really hate this condition, where it takes 241 Satoshis/Byte only for transactions with an estimated time of 1 hour and that doesn't really make sense. If this continues, how is it possible that Bitcoin can become a legal payment in everyday life, if the fees can be as crazy as this.

Yes, that's so: miners are enjoying mega profits while mempool is slowly coming to a standstill. That's why most miners support ordinals. But I don't think network security can be enhanced by these ridiculous fees.

At the the tx time or date - judging by my latest experiments with the network it doesn't make any difference. Mempool is so congested (250k unconfirmed transactions yesterday if I'm not mistaken) that nothing helps. The only thing you could do is bump the fee. 

Pools (miners) can push cheap transactions when they find blocks. Normally this is can be used to pay the individuals who contributed hashrate to find the block, and there have been pools offering "acceleration service" so if you got one transaction stuck, you can pay them to push it for you. Unfortunately it appears more recently this has been used by some pools for the currently ongoing spam attack.

So while normal people who want to use Bitcoin for actual bitcoin transactions (pay and be paid with) aka: circular economy, have to use outrageous fees, they (spammers) do not, since those pools are collaborating with them.

Now if the high fees were the product of worldwide bitcoin adoption, we would be fine with it. But it being from an external non bitcoin source from an exploit found by the relaxation of consensus rules which opened this vulnerability, and its now being abused in practice sabotaging the use of bitcoin for the masses (which large corporations don't care about) it is naturally causing a commotion in social media.

I have seen people correctly identify the problem and proposing actual solutions, and others clearly not caring about Bitcoin as a project just getting some extra fiat out of this mess (and some even participating in it) while laughing and ridiculing at the misery of others who dared used bitcoin for its original purpose.

If the spam flood means miner benefit at the expense of people being unable to use it for normal coin transactions anymore, one of the key fundamentals will be broken. Contrary to the lies some involved parties in the attack spread, these are NOT real transactions, they make a normal transaction and attach trash to it which is how they found a loophole in the protocol and is currently being exploited.

This loophole wasn't there in the past, which is why people on social media, etc, are addressing the current Bitcoin "core" developers.

Remember that high fees product of real bitcoin adoption is a good thing, but not when its not bitcoin transactions. It is very dangerous instead as it opened the floodgates for all sorts of abuse which we are witnessing right now. From the list of the currently involved, you can clearly see which of those companies were never bitcoiner in the first place, and where their real interests lie. And some are even blatant about it "Bitcoin sucks anyway", "high fees are good", "come to us instead"...

So yeah, interested parties that need Bitcoin success to dwindle down because to them means more profit. Should you support those companies? Check twice who you engage with. Names are being mentioned in connection to this DDoS spam attack... Names that belong to a list of shame.

And doesn't this also benefit some States and their CBDCs? So don't be surprised if some of those powers are behind the attack as well. Some people are saying the timing is too convenient, we are witnessing the USD getting in trouble which could easily pull the other fiats and cause the next economic crisis.

Don't believe everything you read online...That part was likely written by the unqualified.

Bitcoin derives it's security mostly from decentralization... Its users, developers, developments, softwares, infrastructures, miners, etc are supposed to be decentralized. The more decentralized, the better. Decentralized mining actually keeps the Network secure. The incentives & competitions are meant to keep them on the network, growing & in decentralized manner to prevent a hijack by central forces. High fees will only drive away much needed users and consequently reduce the number of miners on the network.  If the users are all driven away, there will be no fees for the miners and bitcoin will be worthless for them to value.

In regards to prioritizing on high fee transactions which it calls "valuable transactions", that makes little sense as low fee transactions could as well be considered valuable and should be taken seriously. An attacker with unlimited money printed out of thin air can just spam the network with bitcoins it does not value using high fee to delay important transactions.

Miners or network validators are the ones that are really benefiting from the network congestion. They are incentivise for each transaction they validate on the network and because of how congested the network is, they tend to favour transactions with higher transaction fees over lower transaction fees.

This is not true... Making transactions at night or during the weekends will make no difference. The Bitcoin network is not your typical internet or communication network.

NOPE

most pools have a payment share system where the pool manager takes the fee's and shares only the rewards with the miners

however the pools that have their own miners are obviously a different thing. but they win either way as they are the same business

Definitely so. Imagine paying close to 200sats/vbytes for single transactions. This amount can be used to pay for five or more transactions before This insane congestion of the mempool


I have also seen this advice from Charles-Tim on a thread before. Although it is logical that people will make less transactions in this two periods than the other periods. But I doubt this will work at this period at the moment because even the pending or unconfirmed transactions that will be left in the mempool won’t go down then. More so bitcoin is a global currency and the time varies for each locations, the night period could be the day time in another location.

How true is this statement above. So are miners having a field day now that we are see ridiculously high fees? I read somewhere on this forum that the high fees seems like an attack on the bitcoin network but it seems not to make any sense with the above statement that proposes that high fees enhances network security.

Of all the options I read on dealing with the high fees someone suggested making a transaction at night time or during the weekend because they believe that the network will be less congested and the fees will be lower. Has anyone attempted this?