Why is bitcoin price not dropping when sending fees are so high? - page 2.

hahahafr

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Of course, if you are holding more than one bitcoin, and you bought that bitcoin at $200 (let's assume)

Would you sell those bitcoins when the price has already made x100 and you have to pay $20 or $30 for fees?

Quote from: Vod on December 14, 2017, 10:10:13 AM

Cause when you are hodling you don't care about transaction fees.

I have seen that a lot of people were desperated for withdrawing their money.

There was a guy who withdrew more thn $50,000 and he paid fees worth of $3,000 to make his transaction go through, that is a bunch of money and i would never spend that amount just for "fees".

dimastegar

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Small Trader

The reason is that this is digital money (crypto money) which has its own rules. And also Exchangers and Wallets have their own policies, in determining the delivery fee.

Celebrity

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Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Sending fee is not everything for bitcoin. There is more of it, the mining difficulty, the demand, the popularity, manipulators, adoption etc.

It's not only a payment method. It has many aspects behind.

cindygirl

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Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Because a lot of people hold bitcoin purely to speculate on the price instead of to actual use it to conduct transactions. Also many who conduct transactions are using large amounts of bitcoin and so a fee of $10 or so isn't actually all that much. But you're right that large fees will be holding bitcoin back.

squatter

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STOP SNITCHIN'

Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Seems like the market is telling us that Bitcoin investors don't care about rising fees. If cheap fees were important to the market, it would have a discernible effect on supply and demand.

If most people are simply holding BTC as an investment, they're not even paying fees to use Bitcoin, so it doesn't matter to them. At the same time, transaction volume is generally increasing, meaning that people still find value in on-chain transactions at these fee rates. At some point, equilibrium will be found, and transaction volume will drop due to growing fees. That will naturally cause network fee rates to drop.

stompix

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Blackjack.fun

Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Because people who complain about fees are trying to move 10$ or 50$.
Those that move millions and can influence the market don't give a damn about a 15$ fee.
And as Vod said,for the others, it costs 0 to HODL.

So the cost of transactions, even combined with all he FUD about them is not affecting the price the in the slightest way .

iostreamhs

newbie

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The prices are high because the demand is high and supply is low. If you ask why is it not correcting itself because new people are investing every day, they fear on missing out the bitcoin train. The transaction fees are high because every transaction needs to mine by a miner, the miner will only mine if he gets profits on the investment he made to mine a block.

jseverson

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Quote from: Pan Troglodytes on December 14, 2017, 10:16:05 AM

Quote from: Vod on December 14, 2017, 10:10:13 AM

Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Cause when you are hodling you don't care about transaction fees.

OK let's assume you are right. --Because everybody is holding-- would be the answer to the OP's question. But, let me ask this: why are the fees so high and transaction backlog 130k+ if everybody is holding (so nobody is transacting, I assume)?

Actually the OP is right, what we are seeing right now makes little sense and begs for explanation

EDIT: maybe the correct answer is that everybody is holding and if not - the demand is on the buying side.

I imagine most of these are people sending coins to their own addresses, or back and forth from exchanges. After all, what you have stated is entirely logical. It's a given that if a currency is being used for its utility in transactions and it fails to do exactly that, people are going to look elsewhere.

But yeah, the correct answer is that while Bitcoin can still be used as a currency, its primary utility is as a storage of value and as an investment. Heck, even cryptos that actually have fast and cheap transactions are primarily being used as a storage of value. Such is crypto's reality these days.

Svelto

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It is 2 different things here. High transaction fees doesn’t mean no demand. It simply means the buyers are willing to pay such high price for Bitcoin. Or it can only be explained that Bitcoin buyers don’t mind about the fees.

bitfocus

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Most investors won't care about this right now as they are holding their Bitcoins and keep holding their Bitcoins for long. But these fees are really too high.

Pan Troglodytes

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Quote from: Vod on December 14, 2017, 10:10:13 AM

Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Cause when you are hodling you don't care about transaction fees.

OK let's assume you are right. --Because everybody is holding-- would be the answer to the OP's question. But, let me ask this: why are the fees so high and transaction backlog 130k+ if everybody is holding (so nobody is transacting, I assume)?

Actually the OP is right, what we are seeing right now makes little sense and begs for explanation

EDIT: maybe the correct answer is that everybody is holding and if not - the demand is on the buying side.

Dapper

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Exactly.

Vod

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Licking my boob since 1970

Quote from: jerry0 on December 14, 2017, 10:03:22 AM

Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Cause when you are hodling you don't care about transaction fees.

jerry0

full member

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Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Topic: Why is bitcoin price not dropping when sending fees are so high? - page 2. (Read 332 times)