What will happen to the transaction fee? - page 4.

ganjamancer

newbie

Activity: 51

Merit: 0

I'm not an expert on bitcoin by any means, but I don't quite understand something.... why would the fee have to remain at BTC0.0002 (for example)? Would not the fee scale with the price of bitcoin to adjust itself appropriately?

For example:

Quote from: neochiny on November 18, 2016, 01:05:05 PM

...
if 1 BTC = $740 then .0002 tx = $0.15 then if
1 BTC = $7,400 then .0002 tx = $1.5 so if
1 BTC = $74,000 then .0002 tx = $15 .
...

Rather, if 1 BTC = 74,000 then shouldn't the transaction fee be BTC0.000002?

European Central Bank

legendary

Activity: 1288

Merit: 1087

it doesn't have to be free and of course it hardly ever has. what it does have to be is realistic. most people have no use for it right now and this is another reason not to consider it. most of the people who are using it right now have a finite limit of acceptable expense. it's already brushing that for some and we're hardly out of the starting blocks.

erikalui

legendary

Activity: 2632

Merit: 1094

The transaction fee is already high. The minimum recommended transaction fee is 0.0000001 per byte which means depending on your transaction, you would need to set the desired fee so that your transaction gets confirmed, irrespective of the price of bitcoins. I don't feel that this amount would matter to an extent we would end up paying a higher fee than the amount of coins we are sending as BTC would never reach beyond $20000.

European Central Bank

legendary

Activity: 1288

Merit: 1087

who or what has a use for something that costs $10 to send every time? we may never get a lightning network. if it was a rock solid bona fide digital gold then maybe that could be justified but it's a couple of decades minimum before it would even look like happening. in the meantime a fee of that size finishes off almost every current use case, not there are that many.

NeuroticFish

legendary

Activity: 3668

Merit: 6382

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The top transaction fees will rise a lot. That will be for top speed processing. Even 10$ or more is clearly possible.

But the ones not in a hurry will still be able to get their transgers for tiny fees, like today.

European Central Bank

legendary

Activity: 1288

Merit: 1087

Quote from: RGBKey on November 18, 2016, 12:36:26 PM

I don't think the tx fee would ever increase to as high as $10, but I'm not quite aware of the workings of why it has been going up in the first place besides the increase in transaction load. I'm worried more about the size of the blockchain growing faster than Moore's Law.

very possible. in fact if i want to empty my wallet today in one go which has a lot of inputs it would cost me $12 normal priority. so i ain't gonna be moving it or spending it any time soon. if it continues to rise then my next tx will be to an exchange and i'll go find something that doesn't cost the earth to use instead.

the fee was lowered once before when the price went through the roof. i assume it can be done again. if it there isn't a cheaper second layer soon then bitcoin will no longer be of any use to me.

Barbut

hero member

Activity: 1694

Merit: 502

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Looks like nobody can give clear answer what will happen with transaction fees. For me transaction fees are normal thing, we pay for everything today, and I just hope they will not increase too much in future. I use blockchain and for now fee is reasonable for me.
Do xappo still have wallet without fees, how they work?

Jhanzo

hero member

Activity: 798

Merit: 506

Thank satoshi

The network should quickly adapt to the change.

The recommended transaction fee increases depending on the number of unconfirmed transaction and their fee. If most of those transactions uses high fees then the recommended fee will increase also.
It is entirely up to the sender how much fee they would include in their transactions. Those who uses 0.001BTC per KB fee obviously thinks that they can afford it. If the price get higher then people will most likely decrease their transaction fees to something that they can easily afford.

neochiny

hero member

Activity: 756

Merit: 503

Crypto.games

Quote from: keyscore44 on November 18, 2016, 01:14:35 PM

Quote from: neochiny on November 18, 2016, 01:05:05 PM

It's possible.
But it wouldn't be because the tx fee rises to say .001/transaction.(could also be possible coz of the miners,although unlikely)
It would rise as Bitcoin value in USD rises.
Like this:

if 1 BTC = $740 then .0002 tx = $0.15 then if
1 BTC = $7,400 then .0002 tx = $1.5 so if
1 BTC = $74,000 then .0002 tx = $15 .

But that is only if the tx fee stays on that rate despite the dollar equivalent($74,000)
Although, who's to say how fiat value would be by then.
(Now: $10 = buy 3 bread Future: $10 = buy 1 bread)

This scenario is taking only rising Bitcoin price. When you calculate also rising transaction fee it can be double.
But yours and my counting is only theoretical, i'm waiting for some expert that will explain that in technical way..

Indeed.
It does only take into factor the rise of Bitcoin's value in dollar since I really have no idea how Tx fees are even calculated/based on. Not the specifics anyway. (I just sort it as miners and traffic) Grin

Very well, then, let us all wait for experts to explain the technical details. Cheesy

Quote from: muhcoins on November 18, 2016, 01:42:27 PM

maybe even more.. but it's impossible to predict...
presuming that the bitcoin price increases, the fee could even go lower.(Less bitcoin, but the same amount if converted to fiat).

Yes. Precisely.

muhcoins

member

Activity: 93

Merit: 10

maybe even more.. but it's impossible to predict...
presuming that the bitcoin price increases, the fee could even go lower.(Less bitcoin, but the same amount if converted to fiat).

keyscore44

legendary

Activity: 2002

Merit: 1016

Quote from: neochiny on November 18, 2016, 01:05:05 PM

It's possible.
But it wouldn't be because the tx fee rises to say .001/transaction.(could also be possible coz of the miners,although unlikely)
It would rise as Bitcoin value in USD rises.
Like this:

if 1 BTC = $740 then .0002 tx = $0.15 then if
1 BTC = $7,400 then .0002 tx = $1.5 so if
1 BTC = $74,000 then .0002 tx = $15 .

But that is only if the tx fee stays on that rate despite the dollar equivalent($74,000)
Although, who's to say how fiat value would be by then.
(Now: $10 = buy 3 bread Future: $10 = buy 1 bread)

This scenario is taking only rising Bitcoin price. When you calculate also rising transaction fee it can be double.
But yours and my counting is only theoretical, i'm waiting for some expert that will explain that in technical way..

crairezx20

legendary

Activity: 1638

Merit: 1046

I think for me it impossible that you pay high fee even the price of bitcoin is increasing they are just relaying in the present price of bitcoin.
But we have no assurance maybe it can be happen in the future.. because we are growing and the price of bitcoin is keep increasing..

neochiny

hero member

Activity: 756

Merit: 503

Crypto.games

It's possible.
But it wouldn't be because the tx fee rises to say .001/transaction.(could also be possible coz of the miners,although unlikely)
It would rise as Bitcoin value in USD rises.
Like this:

if 1 BTC = $740 then .0002 tx = $0.15 then if
1 BTC = $7,400 then .0002 tx = $1.5 so if
1 BTC = $74,000 then .0002 tx = $15 .

But that is only if the tx fee stays on that rate despite the dollar equivalent($74,000)
Although, who's to say how fiat value would be by then.
(Now: $10 = buy 3 bread Future: $10 = buy 1 bread)

xdrpx

hero member

Activity: 616

Merit: 603

It's possible that sometime in the future at least when all the Bitcoins have been mined in 2140, most of the miners would then only be earning by the transaction fees and it would be expected that by then if the fees is about USD 10, then it still wouldn't be as high. Cause think of the future value of the currency, in the future the value of USD 10 would be just as much as USD 0.05 or 0.1 is now (only saying it's a possibility considering how the value of currencies are now as compared to the past). So, the transaction fee still wouldn't be as high as compared to other remittance services like Western Union or probably another service in the future. It could become possible that other forms of blockchain payments emerge and Bitcoin would be in larger competition with those that don't charge fee at all, but that's another situation.

croutonhexagon

full member

Activity: 238

Merit: 100

Transactions fees can be minimised by sending less bitcoin not necessarily be true. I think with time transaction fees would reach sky high. At a time when miners will have very less profit then definitely they would rise three transaction fees even more

keyscore44

legendary

Activity: 2002

Merit: 1016

Quote from: RGBKey on November 18, 2016, 12:36:26 PM

I don't think the tx fee would ever increase to as high as $10, but I'm not quite aware of the workings of why it has been going up in the first place besides the increase in transaction load. I'm worried more about the size of the blockchain growing faster than Moore's Law.

Size of blockchain? I think you mean size of block?
There are already people that think about this - in my opinion it is just technical problem. Maybe not easy, but surelly it will be fixed.

RGBKey

hero member

Activity: 854

Merit: 658

rgbkey.github.io/pgp.txt

I don't think the tx fee would ever increase to as high as $10, but I'm not quite aware of the workings of why it has been going up in the first place besides the increase in transaction load. I'm worried more about the size of the blockchain growing faster than Moore's Law.

keyscore44

legendary

Activity: 2002

Merit: 1016

I began to wonder what will happen with the amount of transaction fee in the future..

I mean, that transaction fee continues to grow, increasing also Bitcoin price.

Now optimal fee is ~19k satoshi, but what gonna happen in few years? How high can be transaction fee when Bitcoin price will be let say $10k? Wink

Is it possible that transaction fee in future will be for example $10 ? Roll Eyes

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