The Effect Of BitCoin Fees Dropping Significantly

btc_angela

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Quote from: mobnepal on February 25, 2018, 02:16:13 AM

I have sent out around $40 worth of bitcoin today with just 6 cents in fee.

Number of unconfirmed transactions has dropped significantly recently because there is no any spam transactions and all normal transactions are going through. So statements like bitcoin not being suitable for micro transactions is just a FUD and it was created intentionally to increase demand for other bitcoin forks with higher block size.

Yes, the whole argument about bitcoin not suited for micro payments is thrown out of the window. And its good to see that the spam attack has stopped and we can moved funds around in less than a dollar. What a dramatic turn around.

Yes, it may be temporary and the network spammer can resume his attack once bitcoin price surges again. But at least we have proven our point that bitcoin can really be functionally as what Satoshi wanted it to be, used as medium for small transactions across the globe.

Gontxi

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Quote from: TheBartender on February 22, 2018, 08:35:58 PM

Not sure how many people noticed but the cost of sending BitCoin has dropped significantly of late. One of the biggest complaints about BitCoin vs altcoins is the speed in the cost. Lightning is supposed to solve the speed issue and it appears that the cost issue isn't so much of a problem these days.

The average cost was about $26 but now it's down to about $3.

My question is what effect do you think this will have on altcoins? In my view, this makes BitCoin more attractive. And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

in my opinion, the amount of decline for bitcoin transactions because the price is currently unstable and down. this is what causes the decline. I'm not too sure this will last long, it will likely rise again once the bitcoin value reaches the previous price that has been achieved.

CryptoMark2585

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it's temporary. It may last for long, even several months but it's always temporary. This is temporary because bitcoin transactions have also become less with its value. Since not anything modified with Bitcoin, it means that much less people are using Bitcoin to make new transactions.

chesegrinder

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The drop of in transaction fee of bitcoin in the network was the successful launch of lighting network, and i believe it is the follow up of the segwit. Now it is good to transfer bitcoin to bitcoin for the low fees. I do not know if this is for temporary or for long term but it will make it a stand-strong and attract new investors as last year it was the main issue of bitcoin (high-transaction-fee). In Altcoin this will be another challenge to compete.

ChiBitCTy

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Personally I prefer facts over opinions. The Lighting Network has just begun and it is already doing amazing things. You've got to realize that even though fee's and transaction times have gotten better, they will continue to do so. SegWit hasn't even been added to Coinbase's platform yet. Lighting Network has probably been added to none at this point. Imagine when all wallets and exchanges have added both technologies.. this are going to get REALLY good.

Here is an EASY to read write up on how the Lighting Network works- https://medium.com/@melik_87377/lightning-network-enables-unicast-transactions-in-bitcoin-lightning-is-bitcoins-tcp-ip-stack-8ec1d42c14f5

squatter

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STOP SNITCHIN'

Quote from: pinkflower on February 24, 2018, 10:05:31 PM

Heres a thought.

If BTC was spammed, and today's mempool count is supposed to be "normal", then does that mean the usage of BTC hasnt grown that much?

I'd say that transaction volume can be a misleading indicator for network growth. The overall trends should agree, but very large divergences (spam attacks, periods of temporarily high activity, anomalies) can occur.

I have no doubt the network has grown in the last several months, but if you look at the last 6 months, mempool size has increased as much as 50-100x over some periods. That can't possibly represent legitimate organic growth, especially when you consider how empty mempools are today.

mobnepal

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I have sent out around $40 worth of bitcoin today with just 6 cents in fee.

Number of unconfirmed transactions has dropped significantly recently because there is no any spam transactions and all normal transactions are going through. So statements like bitcoin not being suitable for micro transactions is just a FUD and it was created intentionally to increase demand for other bitcoin forks with higher block size.

Ukaraki

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Quote from: npkafle on February 22, 2018, 09:36:31 PM

I think this will open way to newer coins. Transferring BTC has been painful since mid last year. I paid $23 to transfer some small transactions of approx. $1200 worth. Its almost 2% of total amount.

Bitcoin trading is a very reasonable thing, but the amount of fees we pay is pretty high, while it's hard to make a bit of money, and I feel that it is It is difficult to trade Bitcoin with other people that I have to pay for them

toti.

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The average cost of sending a bitcoin transaction is cheaper than it's been in a year and a half, showing the price isn't the cryptocurrency's only unpredictable metric these days.

But with all the debate about growing fees, this might come as a surprise. After all, it wasn't so long ago that fees were so high a group of prominent investors and miners created a whole new version of bitcoin mostly to keep fees lower.

This is because bitcoin is a software that requires all of the many thousands of computers that run it to stay in sync. To do so easily, there's a limit on how much data the network can process at intervals, and users need to pay more to get their transactions in at times of congestion.

pinkflower

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Heres a thought.

If BTC was spammed, and today's mempool count is supposed to be "normal", then does that mean the usage of BTC hasnt grown that much?

yepaiyique2

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BTC cost reduction should be a good news for the digital encryption market!

The reduction in transaction costs accelerates the frequency of transactions and the market will recover slowly.

chidrawarster

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I never knew about this. But for me its good news and people will start focusing on btc considering the low fees and higher returns on their investment if held long term.I also see many people still complaining about the higher fees , i would definitely inform them of the lowered fees that would make them exciting as well. May be this has happened due to market at low and also exchanges estimating some normal fees which in turn would increase the transactions volume and hamper the spam as well.

Thefrolly

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This is temporary because bitcoin transactions have also become less with its value. Since not anything modified with Bitcoin, it means that much less people are using Bitcoin to make new transactions. It truly is the only reason why fees are lower (due to the fact there's enough room inside the tiny blocks).

rose9696

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Quote from: SiDtHeBeSt on February 22, 2018, 11:10:33 PM

Quote from: TheBartender on February 22, 2018, 08:35:58 PM

Not sure how many people noticed but the cost of sending BitCoin has dropped significantly of late. One of the biggest complaints about BitCoin vs altcoins is the speed in the cost. Lightning is supposed to solve the speed issue and it appears that the cost issue isn't so much of a problem these days.

The average cost was about $26 but now it's down to about $3.

My question is what effect do you think this will have on altcoins? In my view, this makes BitCoin more attractive. And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

Yeah, the fees has surely dropped alot, which might make bitcoin more attractive and invite more number of investors. But, the fees might go high again in the times of high traffic. I saw the fees went down a few days ago when bitcoin's price had become a bit more stable and had stopped dropping down further, but as soon as it dropped a little bit more the fees were high again. So, I think this might be a temporary thing as there is not much of a traffic.

Quote from: jtipt on February 22, 2018, 10:30:27 PM

Quote from: TheBartender on February 22, 2018, 08:35:58 PM

And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

It's temporary. It may last for long, even several months but it's always temporary. If we see another bull. Run to $20k the transactions will increase along with that, and mempool will become congested again. Right now there are very few transactions compared to what it was 1-2 months ago. This is the primary reason for the drop in fees, while yes segwit helped a lot but still segwit adoption is way too less.

Exactly, if bitcoins go as high as 20k USD again, definitely alot of transactions would be made and it would cause congestion, which would result in higher fees again.

certainly so. The higher the bitcoin cost, the higher the transaction fee. In addition, the transaction time will be significantly longer. However, we can buy bitcoin at a low price and sell high. If your profit is $ 10000 then the $ 26 fee for the transaction will not be a problem. So it is important that we make a lot of money from investing. We will not have to worry about transaction fees.

SiDtHeBeSt

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Quote from: TheBartender on February 22, 2018, 08:35:58 PM

Not sure how many people noticed but the cost of sending BitCoin has dropped significantly of late. One of the biggest complaints about BitCoin vs altcoins is the speed in the cost. Lightning is supposed to solve the speed issue and it appears that the cost issue isn't so much of a problem these days.

The average cost was about $26 but now it's down to about $3.

My question is what effect do you think this will have on altcoins? In my view, this makes BitCoin more attractive. And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

Yeah, the fees has surely dropped alot, which might make bitcoin more attractive and invite more number of investors. But, the fees might go high again in the times of high traffic. I saw the fees went down a few days ago when bitcoin's price had become a bit more stable and had stopped dropping down further, but as soon as it dropped a little bit more the fees were high again. So, I think this might be a temporary thing as there is not much of a traffic.

Quote from: jtipt on February 22, 2018, 10:30:27 PM

Quote from: TheBartender on February 22, 2018, 08:35:58 PM

And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

It's temporary. It may last for long, even several months but it's always temporary. If we see another bull. Run to $20k the transactions will increase along with that, and mempool will become congested again. Right now there are very few transactions compared to what it was 1-2 months ago. This is the primary reason for the drop in fees, while yes segwit helped a lot but still segwit adoption is way too less.

Exactly, if bitcoins go as high as 20k USD again, definitely alot of transactions would be made and it would cause congestion, which would result in higher fees again.

pooya87

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Quote from: squatter on February 22, 2018, 09:16:17 PM

~
I think the drop in congestion is a combination of multiple factors: 1) the market dying down lead to less deposit/withdrawal activity on exchanges, 2) wallets are improving their fee estimation algorithms, 3) exchanges are batching transactions and implementing Segwit, 4) it's probable that a significant spam attack has ended.

since there were 100k unconfirmed transactions and now it is only 2000ish i am going to say it was most probably a spam attack against bitcoin.
1) the "dying down" similar to big rises will lead to MORE deposit and withdrawals on exchanges. people want to sell and others want to buy because price is down. and it is only a small percentage rise. as i said it was 100k versus current 2k
2) still doesn't explain number of unconfirmed transactions
3+4) this two i agree with.

Beefcake

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Beefcake!!!

I think it is important, but not the deciding factor for alts. I suspect there were network attacks for political reasons like what bitmain did before. Its strange to try and damage the coin like this!

I think the most important thing, is that new adopters right now are getting in hoping to make the kinds of returns that early adopters enjoyed. So they don't want to pay $10k for bitcoins, they want to pay a few pennies for whatever alt catches their attention. Some of them might even choose correctly! There is lots of money to be made everywhere in cryptos right now.

Eventually people will use it without thinking about it too much, like paypal or whatever, but until then its going to continue to be a roller coaster ride. And there will alts with significant market cap from here on. Bitcoin is no longer the only(ish) game in town so I expect the popularity of some alts to continue, especially those with novel features (compared to bitcoin) such as etherium, or the 'old' stalwarts like litecoin.

Thecryptocurrency09

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Quote from: TheBartender on February 22, 2018, 08:35:58 PM

Not sure how many people noticed but the cost of sending BitCoin has dropped significantly of late. One of the biggest complaints about BitCoin vs altcoins is the speed in the cost. Lightning is supposed to solve the speed issue and it appears that the cost issue isn't so much of a problem these days.

The average cost was about $26 but now it's down to about $3.

My question is what effect do you think this will have on altcoins? In my view, this makes BitCoin more attractive. And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

Right now, I don't really see how bitcoin significally falling down. What I am seeing is a normal view of bitcoin's manipulation or maintenance. This may take time yet it won't ve really a big basis for it. What is really is all about is not the fall but the changes on it which is good.

jtipt

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Quote from: TheBartender on February 22, 2018, 08:35:58 PM

And secondly, does anyone believe this is a long-term change (the drop in price) or is this merely temporary?

It's temporary. It may last for long, even several months but it's always temporary. If we see another bull. Run to $20k the transactions will increase along with that, and mempool will become congested again. Right now there are very few transactions compared to what it was 1-2 months ago. This is the primary reason for the drop in fees, while yes segwit helped a lot but still segwit adoption is way too less.

Lovecove

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(Thank you for all the merit =) ) ~Lovecove!

There are still many, many alts, even privacy alts, that offer better transaction fees and anonymity than antiquated btc rn.

BTC really has to step its game up if it wants to compete evenly.

You have new alts with privacy features with fees in the cents when sending thousands of dollars worth in coin.

But then again, not everyone has an alt wallet. Whereas most crypto people have btc wallets. Also not all exchanges have the alt you're trying to exchange, whereas virtually all crypto exchanges have btc walletse.

So the pros and cons aside... I still think alts have a fee advantage over btc.

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