Topic: Revision of High transaction fee in bitcoin. - page 2. (Read 241 times)

I have been watching the bitcoin network since past 2 weeks and I have noticed a little decline in the mempool, it has not excwd more than 300k pending transaction since 2 weeks now, this could be because the mempool aren't congested with ordinals, I don't know if this is temporary or permanent but for now, it seems the hype around BRC20 tokens has cool off the crazy fees has stop.

Short term, miners has recovered from their losses and many of them sold plenty of their Bitcoin stash above $45k but long term, they will have to endure for another time to see this profits again because in less than 2 months time, the rewards will be halve the original amount they are earning right now and if you should put the cost of operation into account, many of them will close their mining rig as it wouldn't be profitable to mine.

You are the first to raise concern the congestion of the network neither am I going to be the last to reply, it's left for the community to speak on that, you can see that almost everyone are paying huge amount to be included in the next block, when nobody pays these fees, I don't think the fees will even will even go up but they are ready to pay them and as long as the keep paying, miners will do their job and comfirm the ones they can.
Miners could also be looking at the future incentive of transactions when the block reward are no longer enough to settle them, it wouldn't make sense now if rewards are tiny and then later they somehow make people to fight for transaction fees if block of transactions are limited in the future again.

BTC tx fees are paid to the miners for confirming your tx and as incentive to them for using their computational power to keep the BTC network secure. Tx fees are not designed to prevent the network from being congested, what it does is help miners to prioritize tx's and to also earn from mining.
High tx fee is surely a problem and it makes BTC unusable, especially as a currency, but i think it is a temporary problem. We used to make tx's with 1 sat/vByte before and i think we will see those times again, though i do not know when.

Unfortunately this is one of those issues that polarized the community. There still are a small group of people who refuse to accept that what's known as Ordinals is an attack on Bitcoin, which is why the progress on fixing the exploit this attack is abusing has been very slow and fruitless.

It is going too far to talk about bitcoin prevailing or not, just because of this attack. But you are right that this is affecting the adoption negatively.

It is true that Bitcoin fees are considered a problem for adoption, but it is a problem that has solutions and has been discussed a lot. If your transactions are rare and for large amounts, wait until the fees are reasonable and then broadcast your transactions. However, if you use Bitcoin on an almost daily basis, use the Lightning Network.
If you have not already opened your channel, use https://phoenix.acinq.co/

Transaction fees are an expected and welcome attribute, they incentivize miners to secure the network.  Satoshi noted this in the Bitcoin whitepaper:

Small holders can use lightning network. You can get those lightning network apps that already set up a channel for you. There are many of them that have good reputation. You do not have to use one of them, you can use three or more of them. Exchanges have total control of your coins and the exchange can be hacked. Also the exchange wallet may be under maintenance and in a way you will not be able to use your coin when you supposed to use it.

Lightning network, Liquid Network, Rootstock etc.

They can start as small as possible, just buy Bitcoin in centralized exchange, you will not pay transactions fees as you only pay the trading fees. Yeah I know it's bad to hold your money in CEX since it prone to many issues including bankruptcy.

But that's the only way for small holder.

We know that Crypto transaction fees are paid when you do an action on a blockchain.
The fees prevent blockchain networks from being flooded with transactions and  to prevent legitimate usage of networks.
The reason behind the transaction fee could not be limited to;
1. Faster confirmation time: Bitcoin transactions are processed by miners, who prioritize transactions with higher fees. We know that every business oriented person is after profit and the highest bidder is welcome first. As we look forward in promoting and spreading the usage and acceptance of bitcoin, this fee should be reviewed.

2. Network congestion: During times of high demand on the Bitcoin network, there may be a backlog of unconfirmed transactions. The fee will discourage many from using the network so as to decongest the server.
There should be alternatives to these motives for general adoption.

I researched that on a Monday (one day), the total value of all transaction fees paid to miners hit an astronomical sum above $11 million on that one day, according to Blockchain.com data.

If this issue is been addressed, bitcoin will prevail. The fee is deterring the adoption especially in our rural and local areas.
This transaction fee may stand as an obstacle and a repugnance to the widespread of bitcoin acceptance.