Topic: [NEWS] Ethereum fees higher than bitcoin (Read 219 times)
The cost of executing a smart contract on the ETH platform is extremely high. It takes an average of about $ 4-20 to execute a smart contract. The cost of money transfer is about 2 $. I think the cost is too high right now and the ETH network is congested.
I think that the situation with the fees in the Ethereum network should soon normalize. Yes, now the fee is quite large. This is likely due to the voting of pools for raising the transaction price. As agreements are reached, the cost of the commission will have to decline.
If Ethereum was a network focussed on payments, then this news about Tether getting traction on
Ethereum network would have been a good thing. Unfortunetely rising fees and a maxed-out network
just shows how inefficient this network is with regards to transactions and how very late its focus has been on
finding proper scaling solutions, before scaling can ever become a problem.
A network focusssed on (mass) payments needs to have a few boxes checked :
- Scalability
- Low fees
- Secure and fast transactions
- Userfriendly
Ethereum primary use case used to be smart contracts, but ICO projects mostly failed so that use case pretty much failed with it.
Now Ethereum develeps Tether payments on its blockchain as new use case, on a network very ill-suited for (mass) payments.
If i was an Ethereum investor, i would start getting worried about its direct use cases at this point.
Ethereum network would have been a good thing. Unfortunetely rising fees and a maxed-out network
just shows how inefficient this network is with regards to transactions and how very late its focus has been on
finding proper scaling solutions, before scaling can ever become a problem.
A network focusssed on (mass) payments needs to have a few boxes checked :
- Scalability
- Low fees
- Secure and fast transactions
- Userfriendly
Ethereum primary use case used to be smart contracts, but ICO projects mostly failed so that use case pretty much failed with it.
Now Ethereum develeps Tether payments on its blockchain as new use case, on a network very ill-suited for (mass) payments.
If i was an Ethereum investor, i would start getting worried about its direct use cases at this point.
I don't see reasons to be euphoric here, if these fees were caused by a lot of different Dapps being massively used and their associated tokens gaining value, that could be something to feel satisfied for, but the real reason behind this fees increase is just Tether.
i have been talking about horrible scaling issues that ethereum has for a couple of years now but nobody listens because people usually don't encounter it since they never use it in first place! all their usage is buying it on exchanges and holding it there to dump later one. the most they would do is to move it to a web wallet!!! you can't even install its wallets and run a full node for a couple of years now since the bloat is too huge that you can never run a full node anymore. a full sync at this point with the shitty network would take months!
you know what the funniest part about this and the "flippening" is?
when bitcoin fees went high, the worst thing that happened was that people had to pay higher fees. the network continued, exchanges processed withdrawals and deposits, merchants continued working... and everything else apart from the higher fees were more than fine.
when ethereum fees went high, the network got clogged up, nodes crashed, miners couldn't mine, exchanges had to shut down deposits and withdrawals,... and everything came to a halt for weeks.
Quote
some ethereum developers criticizing bitcoin for high fees, slow confirms
you know what the funniest part about this and the "flippening" is?
when bitcoin fees went high, the worst thing that happened was that people had to pay higher fees. the network continued, exchanges processed withdrawals and deposits, merchants continued working... and everything else apart from the higher fees were more than fine.
when ethereum fees went high, the network got clogged up, nodes crashed, miners couldn't mine, exchanges had to shut down deposits and withdrawals,... and everything came to a halt for weeks.
I was wondering what ethereum dapps could have caused the massive increase in transaction. I was thinking there's no way! and then I read about USDT in the end
Are we going to see more transactions on the ethereum blockchain but with less fees once the upgrade and move to POS is completed?
Are we going to see more transactions on the ethereum blockchain but with less fees once the upgrade and move to POS is completed?
In the past this has already happened. Kitties caused a period of trouble in ETH transactions for a long time. But at that time, ETH had reached the highest prices in its history.
I was wondering what ethereum dapps could have caused the massive increase in transaction. I was thinking there's no way! and then I read about USDT in the end
Are we going to see more transactions on the ethereum blockchain but with less fees once the upgrade and move to POS is completed?
Are we going to see more transactions on the ethereum blockchain but with less fees once the upgrade and move to POS is completed?
It could be that we are gradually having less transaction is bitcoin for now as we have seen that the value of bitcoin has drop a little, and maybe there is more congestion on the network of Ethereum now because this is what I know usually make the fee of some of these coins become very high.
In the past when people use to complain of bitcoin fee become too high, I usually tell them that it is because those coins they are using to compares bitcoin is because they have less volume of trades to bitcoin, the moment that they start having more trade volume, then we should expect that the fee will definitely rise very well, and may even be higher than bitcoin which we are already seeing in the case of ethereum now, and people are already complaining again.
In the past when people use to complain of bitcoin fee become too high, I usually tell them that it is because those coins they are using to compares bitcoin is because they have less volume of trades to bitcoin, the moment that they start having more trade volume, then we should expect that the fee will definitely rise very well, and may even be higher than bitcoin which we are already seeing in the case of ethereum now, and people are already complaining again.
Did you see the spin in this article? Someone on Twitter criticized that ethereum's fees are going higher than bitcoin's fees. The spin here is where this ethereum news website is claiming that ethereum dapps and tokens are gaining traction hehehe.
However, it is true, high fees is caused by too much usage in the blockchain and it will continue as long as usage increases. Remember the Cryptokitties?
That is not the problem. The problem here is the finger pointing. I remember on 2016 some ethereum developers criticizing bitcoin for high fees, slow confirms. Yes, because it was gaining traction. Instead of finger pointing, can everyone get along together and find real solutions?
It seems that the flippening… a flippening, rather, has just taken place. According to many on Twitter, the transaction fees on Ethereum (ETH) have eclipsed that of Bitcoin for the first time in a while.
Prominent Bitcoin proponent Grubles noted that yesterday afternoon, the average standard transfer for ETH cost some $0.045 to $0.064. At the same time, the recommended next hour confirmation fee was $0.03.
Cryptocurrency analytics provider Glassnode corroborated this. It noted in a tweet that Ethereum’s total fees paid metric is up more than 230% since the start of September. It added that yesterday, Ethereum transactors paid more than Bitcoin transactors for the first time in six months.
So, why is this taking place?
Well, this has much to do with Ethereum-based tokens and applications gaining traction.
Tether has migrated hundreds of millions of dollars worth of USDT onto Ethereum from the Bitcoin-based Omni Network, leading to a massive increase in demand for ERC-20 tokens on the blockchain because exchanges have decided to embrace the ERC-20 USDT instead of the OMNI iteration.
Also, decentralized finance (DeFi) applications have continued to see an increasing number of users, as consumers begin to see the value in gaining returns on their holdings and trading in a decentralized manner.
Read in full https://en.ethereumworldnews.com/ethereum-fees-higher-bitcoins-eth-apps-gain-traction/
However, it is true, high fees is caused by too much usage in the blockchain and it will continue as long as usage increases. Remember the Cryptokitties?
That is not the problem. The problem here is the finger pointing. I remember on 2016 some ethereum developers criticizing bitcoin for high fees, slow confirms. Yes, because it was gaining traction. Instead of finger pointing, can everyone get along together and find real solutions?
It seems that the flippening… a flippening, rather, has just taken place. According to many on Twitter, the transaction fees on Ethereum (ETH) have eclipsed that of Bitcoin for the first time in a while.
Prominent Bitcoin proponent Grubles noted that yesterday afternoon, the average standard transfer for ETH cost some $0.045 to $0.064. At the same time, the recommended next hour confirmation fee was $0.03.
Cryptocurrency analytics provider Glassnode corroborated this. It noted in a tweet that Ethereum’s total fees paid metric is up more than 230% since the start of September. It added that yesterday, Ethereum transactors paid more than Bitcoin transactors for the first time in six months.
So, why is this taking place?
Well, this has much to do with Ethereum-based tokens and applications gaining traction.
Tether has migrated hundreds of millions of dollars worth of USDT onto Ethereum from the Bitcoin-based Omni Network, leading to a massive increase in demand for ERC-20 tokens on the blockchain because exchanges have decided to embrace the ERC-20 USDT instead of the OMNI iteration.
Also, decentralized finance (DeFi) applications have continued to see an increasing number of users, as consumers begin to see the value in gaining returns on their holdings and trading in a decentralized manner.
Read in full https://en.ethereumworldnews.com/ethereum-fees-higher-bitcoins-eth-apps-gain-traction/
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