Topic: Transaction fees are a tax on BTC - page 6. (Read 622 times)
yes the fee was high but you earn higher so what is wrong with that dont be too selfish.
I don’t see transaction fees as a tax. It is service fees for miners to help confirm our transaction. Tax doesn’t work in this way. Transaction fees only occur when you send a transaction but tax can occur anytime even when you hold your BTC (think property tax).
Well do you expect a service to be free? Please tell me what service is free in this world. Of course you will spend money paying to get your currency halfway around the world. Also you can't boame miners they don't make the fee the users do.
Who said they are doing it for free? They are already get rewarded for each block they mine and the fee the users pay are just some extras for them. Fees would be needed later when all coins get mined though but not right now.
I think it is a quite not right here. Tx fee is not a tax.
Tx fee is the cost for the algorithm verification of bitcoin transaction.
The miners paid to process your transactions, it is different from tax.
Government didn't do anything and we pay tax to them, but the miners doing work, we pay for them.
Tx fee is the cost for the algorithm verification of bitcoin transaction.
The miners paid to process your transactions, it is different from tax.
Government didn't do anything and we pay tax to them, but the miners doing work, we pay for them.
in as much as you are not remitting your transaction fee to the Government ( cross border authority) you cant call it taxation fee, the transaction you are paying it simply miners reward, reward for maintaining the bitcoin network.
fully agree, and don't worry, one already has to or you will have to very soon pay one's capital gain tax to the government and then one will notice that when one compares the tax to the transaction fees (which may be as high as 20 USD - in December, for instance and one may have thought they were high then), the transaction fees were very very very cheap.
In my opinion, i disagree that we would say transaction fees are like taxes to crypto. Miners deserves that fees for they provide the vital role in what we so call "Blockchain". As we all know blockchain is a ledger technology that prevents double spending of money.
Miners do set the rates as they prefer to process the ones with high fees rather than the ones with low fees. As with taxes, the less you pay, the worse the service you get.
That means the market sets the rates, not the miners. It's basic business sense, too; why would you accept work that pays less when another available pays significantly more? If no one paid any transaction fees, they would confirm transactions for free. That tells us that they have very little say on the fees. That being said, miners could spam the network with transactions to drive the price up, but that also costs money, and is a different discussion entirely.
You only get worse service if you pay a substantially smaller fee than everyone else.
in as much as you are not remitting your transaction fee to the Government ( cross border authority) you cant call it taxation fee, the transaction you are paying it simply miners reward, reward for maintaining the bitcoin network.
fully agree, and don't worry, one already has to or you will have to very soon pay one's capital gain tax to the government and then one will notice that when one compares the tax to the transaction fees (which may be as high as 20 USD - in December, for instance and one may have thought they were high then), the transaction fees were very very very cheap. 
in as much as you are not remitting your transaction fee to the Government ( cross border authority) you cant call it taxation fee, the transaction you are paying it simply miners reward, reward for maintaining the bitcoin network.
Well do you expect a service to be free? Please tell me what service is free in this world. Of course you will spend money paying to get your currency halfway around the world. Also you can't boame miners they don't make the fee the users do.
Taxes, like death, are inevitable. When they go up, people complain. Txn fees are a form of tax on BTC that goes to the miners. No-one wants to pay them but they have to.
I don't agree with that comparison. Tx fee is like a service fee, for instance like your telecom bill for using your cell or like paying for VOD. Tax on the other hand is due to the government for being a citizen and the overall protection you are receiving from them (that you can send your children to school and when scammed you can go to the police and then to court, etc.). And you can be very sure that the governments will very soon ask for the due tax on top of the transaction fee, if they don't do it already
It is a fee but not a tax. It would be a tax if governmental institution provide mining power. Then the fees could be seen as taxes on monetary transactions.
Taxes, like death, are inevitable. When they go up, people complain. Txn fees are a form of tax on BTC that goes to the miners. No-one wants to pay them but they have to.
Miners and network confirmation fees, what would happen if there were no miners or fee.. there would be be Bitcoin netowrk.. The blocks would literally stop, and you think the mempool is bad now?
I can't tell if you're saying that the mempool being too big or too small will drive miners out; if you're saying the fees being too small are an issue, that's not likely - why would miners stop mining because of low fees? They still get no less than 12.5 BTC ($125,000) per block. If fees were too high, then miners still wouldn't want to stop, because now they're making even more money than before.
Yes transaction fees are bad and nobody likes it. There are some altcoins that does not have transaction fees, even some of them does not use blockchain. Maybe you can try these such as Neo, Nano, IOTA, etc. Bitcoin will always stay as king, gold of the cryptocurrencies, however we may need another coin for using in transactions.
If you have to go to a different coin to make transactions, then bitcoin will not always stay as king. But even when the mempool is oversaturated, you won't have to go to a different coin once the lightning network is widespread.
The similarity between taxes and transaction fee is that they are both necessary evils. Things don't just happen for nothing. If you want to transfer your bitcoin you have to pay a transaction fee for that to happen, no one will do it out of the kindness of their own heart. Similarly if you want your garbage collected you have to pay someone to do it, this money has to come from somewhere and that's why you have taxes.
Cash is free. My bank is free. Heck, my bank even pays me interest. If it was a tax we could complain to some one. Over Christmas the "tax" went up and the service went down. You wouldn't stand for that anywhere else.
I'm pretty sure some of the tax money you pay go into printing of more cash. Banks are only free because they make money off you, and they do charge for certain transactions.
I don't have beef if you see miner fees as taxes, but unlike actual taxes, the miners don't set the fees; you can pay however much you want (granted, very low fees are going to get your transaction stuck in limbo). That's a very significant, fundamental difference.
The fees spiked around Christmas time because users started entering into bidding wars for transaction confirmations with each other, driving the fees up. It's more of the network's fault rather than the miners'. I'd also like to note that if you actually paid the increased fee, you'd get the usual service, so it technically didn't go down.
Miners do set the rates as they prefer to process the ones with high fees rather than the ones with low fees. As with taxes, the less you pay, the worse the service you get.
Yes transaction fees are bad and nobody likes it. There are some altcoins that does not have transaction fees, even some of them does not use blockchain. Maybe you can try these such as Neo, Nano, IOTA, etc. Bitcoin will always stay as king, gold of the cryptocurrencies, however we may need another coin for using in transactions.
Taxes, like death, are inevitable. When they go up, people complain. Txn fees are a form of tax on BTC that goes to the miners. No-one wants to pay them but they have to.
Correlating Bitcoin's transaction fee to tax is flawed. Paying tax is fixed based from your revenues and some other basis or factors. You can do tax evasion (but brace yourself about the consequence. While transaction fees are not fixed, you could increase or decrease the fee if you wanted to. You can even not pay tx fee but better wait days or weeks before being confirmed (if it will be
)Therefore tx fee is a just a fee. You used their service (mining), pay some fee. You want your tx to be confirmed quickly, pay more fee. Willing to wait, pay less fee. etc. etc.
Taxes, like death, are inevitable. When they go up, people complain. Txn fees are a form of tax on BTC that goes to the miners. No-one wants to pay them but they have to.
Miners and network confirmation fees, what would happen if there were no miners or fee.. there would be be Bitcoin netowrk.. The blocks would literally stop, and you think the mempool is bad now?
Cash is free. My bank is free. Heck, my bank even pays me interest. If it was a tax we could complain to some one. Over Christmas the "tax" went up and the service went down. You wouldn't stand for that anywhere else.
I'm pretty sure some of the tax money you pay go into printing of more cash. Banks are only free because they make money off you, and they do charge for certain transactions.
I don't have beef if you see miner fees as taxes, but unlike actual taxes, the miners don't set the fees; you can pay however much you want (granted, very low fees are going to get your transaction stuck in limbo). That's a very significant, fundamental difference.
The fees spiked around Christmas time because users started entering into bidding wars for transaction confirmations with each other, driving the fees up. It's more of the network's fault rather than the miners'. I'd also like to note that if you actually paid the increased fee, you'd get the usual service, so it technically didn't go down.
I think so, the commission is not like tax,
commission for transactions BTC is more like a commission when calculating a debit card,
taxes of the state is another opera!
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