Topic: Risk From Fees & Minimum Transaction Denominated In BTC (Read 460 times)
Fees can be (and, in fact, already have been) reduced in response to rising exchange rates.
Hi,
Can you please point me to some discussion on the issues arising from denominating minimum fees and transactions in BTC?
It seems pretty clear to me that as BTC appreciates against fiat currencies, a 0.0005 BTC minimum fee, or a minimum transaction output size of 0.00005430 TBC (currently $US0.007), are going to quickly be onerous.
Within the Bitcoin realm, these are minor constraints, but if the value of the Bitcoin appreciates, as expected, against fiat currencies, the exchange rate will inflate those small fractions of a BTC.
Bitcoin defends itself against criticism of the capped maximum number of BTC ( https://en.bitcoin.it/wiki/Myths#21_million_coins_isn.27t_enough.3B_doesn.27t_scale) with the 108 divisibility, a defence that is weakened by these BTC denominated fixed minima.
When 1.00 BTC is $US1,000, a fee of 0.0005 BTC is $US0.50 and a $US2.00 item (0.002 BTC) is bearing a transaction fee of 25%. Not very appealing.
No doubt I've misunderstood something, and surely it's been considered already, so if you can point the right way I'm, like all newbies, eager to learn. Additionally in this case, eager to have my fears of a threat to Bitcoin's low transaction cost appeal allayed.
Hamish.
Can you please point me to some discussion on the issues arising from denominating minimum fees and transactions in BTC?
It seems pretty clear to me that as BTC appreciates against fiat currencies, a 0.0005 BTC minimum fee, or a minimum transaction output size of 0.00005430 TBC (currently $US0.007), are going to quickly be onerous.
Within the Bitcoin realm, these are minor constraints, but if the value of the Bitcoin appreciates, as expected, against fiat currencies, the exchange rate will inflate those small fractions of a BTC.
Bitcoin defends itself against criticism of the capped maximum number of BTC ( https://en.bitcoin.it/wiki/Myths#21_million_coins_isn.27t_enough.3B_doesn.27t_scale) with the 108 divisibility, a defence that is weakened by these BTC denominated fixed minima.
When 1.00 BTC is $US1,000, a fee of 0.0005 BTC is $US0.50 and a $US2.00 item (0.002 BTC) is bearing a transaction fee of 25%. Not very appealing.
No doubt I've misunderstood something, and surely it's been considered already, so if you can point the right way I'm, like all newbies, eager to learn. Additionally in this case, eager to have my fears of a threat to Bitcoin's low transaction cost appeal allayed.
Hamish.
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