One way to stablize low transaction fee is to limit the number of miners to participate and lower the difficulty level. However, in doing so, we would sacrify the security of the blockchain. My brain is too small to come up with a good solution.
Topic: The impact of micro-transaction on Bitcoin (Read 1208 times)
I think the micro transaction issue cannot never be solved because transactions require validations and validations requires computer time (variable cost) and hardware investment (fixed cost). Any crytocurrencies, when gain enough popularity, the number of nodes increases, makes it harder for miners to get reward, and the compensation (transaction fee) has to go up enoguh to motivate miners to do the validations. That is how the blockchain works. There is always a treat off.
One way to stablize low transaction fee is to limit the number of miners to participate and lower the difficulty level. However, in doing so, we would sacrify the security of the blockchain. My brain is too small to come up with a good solution.
One way to stablize low transaction fee is to limit the number of miners to participate and lower the difficulty level. However, in doing so, we would sacrify the security of the blockchain. My brain is too small to come up with a good solution.
inability to achieve smaller transactions using bitcoin will definitely spring up other altcoins due to their lower transaction rate. But my fear and question is, won't that affect the demand level? Won't people start shifting their gears and start accepting other coins better than bitcoin? Maybe, that will throw a balance a little bit to the price of bitcoin or maybe displace it as the king of cryptocurrency and ethereum may be the coin to watch out for.
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
IF i am not wrong it will become like bitcoin will be used just like gold to perserve for long term and other altcoin for small transaction. The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
Your worry isn't really a valid worry at all - high transaction fees doesn't mean that bitcoin cannot be transferred. It just meants that small amounts of bitcoins cannot be transferred, but if someone is able to save up for a bigger amount of bitcoin that will still beable to be sent as payment.
However the high transaction fees combined with the high bitcoin prices is definitely causing a problem. I don't think i've eer used any sort of payment processor that charges me $2.5 on a $3 transaction i make. Not even paypal, honestly.
Maybe this is the reason why people decided to pump dogecoin a bit, because doge blockchain was relatively free and the transaction fees are still low as always - 1 doge
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
Bitcoin and its ability to be used as a medium of exchange isn't really affected at all by micro transactions not being able to processed on the bitcoin network. What is really sacrificed is no longer can people transmit small amounts of money.
If you want to send big amounts of money, bitcoin is still king. It is significantly cheaper to send $1 million overseas with bitcoin, than with a bank account or a paypal account. And it's anonymous too. And did i mention that you don't need to be bugged by your taxation agency all the time to explain where your money came from as well?
All this will be sorted out in August as the community basically votes. Bitcoin will scale eventually no matter what.
IMHO, it has agreat impact on bitcoin and also to miners. Though it will clogged the systems for transaction, but I am hoping it will be done in fast transaction expecting more transaction to be cleared asap. Micro transaction and or micropayments will become popular in the future.
Because of the high fee I already shifted to ETH for smaller amount transaction if a seller is ready to accept.
but no merchant accepts ethereum! it is not even a currency to be accepted as payment. and besides the fees are pretty high there too, they are getting very close to $1 now!
and you will have a much better chance finding a merchant that accepts Doge coin or Litecoin instead and they have a much lower fee and a much better security with no bugs.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
The high price of bitcoin as well as the transaction charges have an impact on the micro transactions which was possible a year back and now no one will be using bitcoin to send micro transaction as it is not at all profitable and as a normal user with the price so high ,no one would dare to invest money in it but expect big funds from investors and millionaires. 
My feedback is that unfortunately it is currently better to use "traditional" online payment systems like paypal, neteller or skrill to buy small items online.
For several reasons:
I don't think switching to another cryptocoin will solve the problem, because soon as this altcoin will be more used, there will be the same problems that Bitcoin has now: high fees and long confirmation time.
So, currently, Bitcoin is absolutely not convenient to buy small items.
A different thing would be if you buy high price items, like 10k $ or even more. Well, in this case, Bitcoin is better than any other method.
But the fact is that many people here cannot afford to buy expensive stuff and would prefer to buy small items using bitcoin.
A solution is needed!
For several reasons:
- They are widely accepted among merchants
- They are instant
- they are far cheaper to use than Bitcoin
I don't think switching to another cryptocoin will solve the problem, because soon as this altcoin will be more used, there will be the same problems that Bitcoin has now: high fees and long confirmation time.
So, currently, Bitcoin is absolutely not convenient to buy small items.
A different thing would be if you buy high price items, like 10k $ or even more. Well, in this case, Bitcoin is better than any other method.
But the fact is that many people here cannot afford to buy expensive stuff and would prefer to buy small items using bitcoin.
A solution is needed!
While i was getting some small payment about 2$ or lesser i was giving bitcoin address so easy transfer now its like dream because my lots of transfer being unconfirmed and disappeared it really not worth using bitcoin for micro transaction now a days it was easier to send payment using bitcoin for less amount now i can't dream about that
Some of these wallet providers are "stealing" from people. They fail to adjust the fees, when the recommended fee goes down. < They profit from users not knowing what the recommended fees are supposed to be, at the time of the transaction > I always make a screen capture of https://bitcoinfees.21.co/ when I make a transaction via these services, to use as evidence, when I want to take them on. ^smile^
We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^
And why would they do that? Its not like they profit from users paying higher fees. More like the opposite.We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^
Higher fees = Less tx per users to avoid losing money or users moving to another wallet.
Also, I only see the recommended fee going up every day with the constant increase of unconfirmed tx and not the opposite.
The answer is simple, they do it because users have no choice in the matter. The Wallet providers will blame the Bitcoin scaling problems and they will try to get away with this as long as
possible. The moment you have a scape goat, you will use that opportunity to exploit people. < Some will complain / some might leave / others will make less transactions > but the majority will stay and accept their excuses.
Do not underestimate the power of greed. < The miners are blaming the Bitcoin developers, so they also profit from this situation >
Some of these wallet providers are "stealing" from people. They fail to adjust the fees, when the recommended fee goes down. < They profit from users not knowing what the recommended fees are supposed to be, at the time of the transaction > I always make a screen capture of https://bitcoinfees.21.co/ when I make a transaction via these services, to use as evidence, when I want to take them on. ^smile^
We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^
And why would they do that? Its not like they profit from users paying higher fees. More like the opposite.We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^
Higher fees = Less tx per users to avoid losing money or users moving to another wallet.
Also, I only see the recommended fee going up every day with the constant increase of unconfirmed tx and not the opposite.
I was thinking that one way to lower the transaction fees is to lower the average time that miners can validate a block, but it is not realistic because that means more bitcoins will be mined quicker than what the scheduled amount was planned. Another thing, which is out of our control, is that for the following 100 years if the price of bitcoins is high enough to compensate the miners, then the transfer fees, perhaps, can stay low.
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
It's extremely frustrating to see that you have enough money in your bitcoin address but yet you cannot pay for something because of transaction fees. I just sent a transaction, and it cost me 0.002 btc because it had multiple inputs.
Will this impact bitcoin? Of course it will. People used to use bitcoin faucets but now it's not going to happen. Real life usage is pretty much destroyed as well. No one is going to pay for a cup of coffee for twice the price just cause they're using bitcoin.
Speculation is always going to be a big part of bitcoin, that's not going to change. But in the future, more and more merchants start accepting btc and therefore, btc price will stablize, making it hard for big market manipulators to operate.
The fee is really getting bigger now, even in exchanges they have increase the fees and the minimum I have to pay is like 2 dollars
for single transaction so this is not really good for micro transaction. I guess we have to look for better alternative.
for single transaction so this is not really good for micro transaction. I guess we have to look for better alternative.
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
The scaling debate might solve this issue if one side wins and I hope that will be the way to lower transaction fees and faster confirmation times. The high transactions would hold back bitcoin's price growth in the long run and because of this it needs to be solved right away. Also higher transaction fees in the future might make some users look for other ways or other altcoins to send money if this continues. If that happens bitcoin will still continue to be an effective medium of exchange for big transactions only and an effective store of value for crypto users. The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
It's definitely holding back bitcoin's potential a lot. I remember that I used to be abel to get just 0.0003 BTC and have fun with it at a bitcoin casino because i would send the transaction with 0.00005 BTC fee and it'll still confirm within 20 blocks.
It's still a very good medium of exchange, no doubt.
Nowadays i can't even do it with 0.001 BTC, let alone 0.0003 BTC.
The price is definitely mostly speculation, however all coins will have scaling problems. All decentralised coins anyways. Bitcoin will pull through this, trust me
Some of these wallet providers are "stealing" from people. They fail to adjust the fees, when the recommended fee goes down. < They profit from users not knowing what the recommended fees are supposed to be, at the time of the transaction > I always make a screen capture of https://bitcoinfees.21.co/ when I make a transaction via these services, to use as evidence, when I want to take them on. ^smile^
We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^
We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^
Why bitcoin is made whether bitcoin is designed by not buying cheap goods, but I agree with the design but bitcoin can be fiat money that you can use to buy cheap goods.
My concern is that if Bitcoin can be an effective medium of exchange tool?
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items. Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.
How will the high transaction cost impact Bitcoin usage and price in the long run? I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.
Please provide your feedback. Thanks.
I quess that we are all waiting for the scaling to solve this "high fees" issue.
Right now bitcoins looks more like a stock or gold rather than a real currency.
I`m not sure that scaling or Segwit will lower the transaction fees.
All the miners want high fees and more revenue.
Jump to: