The problem with transaction fees | Bitcointalksearch.org

Red-Apple

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Quote from: missycoin on January 15, 2018, 06:03:48 AM

Story sounds like a story of bitcoin

Fees are getting bigger and bigger and the whole point of bitcoin disappears with it.

the "whole point of bitcoin" was to be a decentralized currency and it is still a decentralized currency only with higher fees. it has not disappeared, it just is in a rough patch at the moment.

Images21

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Quote from: Deepiefface10 on January 14, 2018, 05:44:03 AM

Miners win more than before they will destroy bitcoin if they keep doing like this.
No one ready to pay 20$ to send 30$ it’s too high.

Definitely. This is way too much. Transaction fees, the almost unbelievable transactions fees, will really be a big reason why a lot of people who are fans of Bitcoin will not be spending it. I for one will be spending only a little. I only save the biggest portion for hodling. I know that even though this is the case Bitcoin will still grow bigger.

missycoin

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Story sounds like a story of bitcoin

Fees are getting bigger and bigger and the whole point of bitcoin disappears with it.

maianh09

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Quote from: ptd on March 26, 2011, 03:19:29 PM

Consider a world where mining only pays out transaction fees. Almost all miners charge a transaction fee of t and all users pay a transaction fee of t on their transactions.

One miner decides to increase his profits by charging a smaller transaction fee. He publicly announces his intention and many users reduce their fee to be on par with the new fee he has announced. The miner increases his profits (because he processes more transactions) and the users save money. All other miners are forced to reduce their fees as well in order to make any transaction fees at all.

This process continually repeats itself until transaction fees are reduced to their smallest possible value and very little mining is done. This leaves the blockchain venerable. One solution is continue to pay out a block reward forever. What do people think?

There are many accepting a transaction fee to be able to complete their transaction block. And precious miner prioritizes high fee transaction for execution. That is why the price for each sale is usually high.

Lancusters

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Quote from: szpalata on January 14, 2018, 11:34:32 PM

Quote from: tarvizlisar on January 14, 2018, 08:10:53 PM

Bitcoin users currently are paying around $28 on average just to make transactions using the digital currency, according to information released by BitInfoCharts. Transaction Fees has Continue to destroy the Bitcoin Network.

The fees are currently getting out of hand and something needs to be done because i pay almost 20$ or more on each transaction and that's huge by my standards and so i agree with you that the huge fees are destroying or might destroy the bitcoin network.

A big fee per transaction this is certainly a problem. But you will agree with me that nobody uses bitcoins for small purchases. The users themselves are to blame for what has turned bitcoin into an asset for savings. When your savings in bitcoin increase in price by a few hundred dollars you're not outraged. The miners do not want to stay away from income. All is fair.

btcluisdiki

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Quote from: szpalata on January 14, 2018, 11:34:32 PM

Quote from: tarvizlisar on January 14, 2018, 08:10:53 PM

Bitcoin users currently are paying around $28 on average just to make transactions using the digital currency, according to information released by BitInfoCharts. Transaction Fees has Continue to destroy the Bitcoin Network.

The fees are currently getting out of hand and something needs to be done because i pay almost 20$ or more on each transaction and that's huge by my standards and so i agree with you that the huge fees are destroying or might destroy the bitcoin network.

Bitcoin transaction fees could probably becomes high since there are many transactions that are competing each other as to which can get there first and this is just one of the many reasons. But for those bitcoin loyal users, they consider this as a temporary problem since there will be a solution soon in the future. This will be expected that all the networks should withstand the demand in the market.

szpalata

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Quote from: tarvizlisar on January 14, 2018, 08:10:53 PM

Bitcoin users currently are paying around $28 on average just to make transactions using the digital currency, according to information released by BitInfoCharts. Transaction Fees has Continue to destroy the Bitcoin Network.

The fees are currently getting out of hand and something needs to be done because i pay almost 20$ or more on each transaction and that's huge by my standards and so i agree with you that the huge fees are destroying or might destroy the bitcoin network.

jseverson

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Quote from: DeadCoin on January 14, 2018, 10:50:15 AM

Quote from: Deepiefface10 on January 14, 2018, 10:07:20 AM

woow that’s happen after 6 year. many miners ask for unacceptable fee.
more than normal fee, more than electric bill and fast rich for them

Almost past 4 weeks have been worst. The fees are too high. No worries. More the investment comes in, adaption starts then obviously the fees may hit the floor.. Let's wait. Now the rate starts resuming back to normal. Once the banning of traders completes in Korea, we would see a better situation in BTC price as well as in transaction fees.

How would increased adoption help the fee situation? I see it the other way around. Heck, the reason why the fees are so high right now is probably due to increased adoption, with the entire world talking about Bitcoin towards the end of 2017. This is a manifestation of the scalability problem.

Korea is one of the largest cryptocurrency markets, so I don't think a ban there would do Bitcoin price any favors (and it turns out there are no immediate plans for a ban anyway). The transaction fees may decrease though, because you're essentially eliminating an entire market from contributing to the transaction backlog.

JosephStalin

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The problem with transaction fees is also a problem of scalability. Bitcoin as it is now, dies not work as a currency. Full stop. Something will have to change, or else.

Anti-Cen

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High fees = low BTC price

We can afford fees if we only had the 1,000 or less miners we need to keep the network running
but we cannot afford the 20,000 miners we currently have because we don't have that much cream
to go around and we need to cull the numbers down.

51% attack is clap trap and anyone that builds a financial system based on this principle should
call it a day and seek new employment and was the Bitcoin development team not to be filling it's
pockets then they just need to add this line of code the the core project if they didn't have the
brains to do it in the first place

public static money MaxFee = 1.50 // 20,000 miners processing only 7 transactions a second needed to end yesterday

That will fix $25 rip-off fees and stop the Bitcoin price from falling even more but if you think Lightning
is not just a network of banks that are calling hubs being added to Bitcoin then you best watch this video
to the end and note that the presenter is pro-bit coin

https://www.youtube.com/watch?v=MpfvhiqFw7A

Others are more to the point

https://www.youtube.com/watch?v=_TXduhKbe-c

tarvizlisar

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Bitcoin users currently are paying around $28 on average just to make transactions using the digital currency, according to information released by BitInfoCharts. Transaction Fees has Continue to destroy the Bitcoin Network.

DeadCoin

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Quote from: Deepiefface10 on January 14, 2018, 10:07:20 AM

woow that’s happen after 6 year. many miners ask for unacceptable fee.
more than normal fee, more than electric bill and fast rich for them

Almost past 4 weeks have been worst. The fees are too high. No worries. More the investment comes in, adaption starts then obviously the fees may hit the floor.. Let's wait. Now the rate starts resuming back to normal. Once the banning of traders completes in Korea, we would see a better situation in BTC price as well as in transaction fees.

Deepiefface10

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woow that’s happen after 6 year. many miners ask for unacceptable fee.
more than normal fee, more than electric bill and fast rich for them

ahmad21

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Quote from: ptd on March 26, 2011, 03:19:29 PM

Consider a world where mining only pays out transaction fees. Almost all miners charge a transaction fee of t and all users pay a transaction fee of t on their transactions.

One miner decides to increase his profits by charging a smaller transaction fee. He publicly announces his intention and many users reduce their fee to be on par with the new fee he has announced. The miner increases his profits (because he processes more transactions) and the users save money. All other miners are forced to reduce their fees as well in order to make any transaction fees at all.

This process continually repeats itself until transaction fees are reduced to their smallest possible value and very little mining is done. This leaves the blockchain venerable. One solution is continue to pay out a block reward forever. What do people think?

Yes ofcourse it is an absolutely feasible option at our end. But the problem comes on the end of the miners. Lets imagine if one of them decides to lower the fees but the problem is the extent to which he can lower it. We all very well know that he will keep certain profits as to meet his expenses and keep something for him.

Quote from: bitfocus on January 11, 2018, 10:28:06 AM

I guess Huge Bitcoin Fees will drop now and that would be a relief to the Bitcoiners https://www.bitcoinmarketinsider.com/mainnet-lightning-payments-drops-bitcoin-fees-near-zero/

When do you possibly see the expansion of lightning network to all our wallets?

Deepiefface10

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Miners win more than before they will destroy bitcoin if they keep doing like this.
No one ready to pay 20$ to send 30$ it’s too high.

bman01

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The transaction fee for mining makes sense to some extent, but still it is frustrating to wait for some time. The problems with the transaction fee are yet unsolved and let’s see what happens with it.

icoprofits

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bitcoin transactions fees especially blockchain.info is charging more rather than other wallets and they are lot of confirmed transactions as well

bitfocus

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I guess Huge Bitcoin Fees will drop now and that would be a relief to the Bitcoiners https://www.bitcoinmarketinsider.com/mainnet-lightning-payments-drops-bitcoin-fees-near-zero/

markleal

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Quote from: ptd on March 26, 2011, 03:19:29 PM

Consider a world where mining only pays out transaction fees. Almost all miners charge a transaction fee of t and all users pay a transaction fee of t on their transactions.

One miner decides to increase his profits by charging a smaller transaction fee. He publicly announces his intention and many users reduce their fee to be on par with the new fee he has announced. The miner increases his profits (because he processes more transactions) and the users save money. All other miners are forced to reduce their fees as well in order to make any transaction fees at all.

This process continually repeats itself until transaction fees are reduced to their smallest possible value and very little mining is done. This leaves the blockchain venerable. One solution is continue to pay out a block reward forever. What do people think?

Hi there ptd! Those transaction fee is really a pain in the ass. The solution you said is quite possible, but I just wondering how those thousand of miners could possibly do that. As far as I know, most of the miners are independent, meaning there is no one who could control their decision in terms of those transaction fees. That is one of the reason government want to step into the system to create a regulation about pricing. But most of us, can’t determine if it could produce a positive or a more negative effect. Wink

Kakmakr

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This could have worked, if the miner with the lowest fees, would have been able to handle all the transactions coming their way. Unfortunately that kind of hashing power would not be possible, and this is why the load is spread over several pools.

If you change it a little bit, say miners X with the lowest fee is at capacity, then the tx's goes to Miner Y, with the second highest miners fees etc. etc. This would make things very interresting.

The problem will occur, where some miners will be priced out of the mining scene, because they will be unable to compete with the bigger miners with the low fees.

Topic: The problem with transaction fees (Read 4483 times)