Bitcoin Forum

The high transaction fees means right now bitcoin is not going to be good long-term as a form of currency.

Which means part of the reason for holding and believing bitcoin will grow massively in the long term is flawed.


What's your response?

Transaction fees only matter if you think of bitcoin as a tool to make daily payments, and we are still far away from that. I agree with you that the transaction fees are high, too high even, but if you think of bitcoin as a means of investment, then the transaction fees don't mean much, since you're supposed to hold on to your coins for a long time.

Bitcoin is still in the investment phase, and it will take a long time to reach (if at all) the "daily payment method" phase.

this isnt a flaw in the protocol, this is a flaw in how we choose to utilize bitcoin, despite its function being plainly spelled out by Satoshi in the white paper. "small, casual transactions" my ass at this point. we are speculating on something we should be using only to transact with. the value of bitcoin, like the many utility erc20 shit tokens, should be tied to the utility/intrinsic value. this isnt that. as we updated and forked, as the halvings take place, the value should have grown steadily, not like what we saw in 2017.

and this wont last. we may even surpass 10k in the immediate future (i hear calls now for 12K).

but that "may" isnt good enough for me and my money. its been a fun ride. im getting off at 10k, and getting back in around 7-8K.

Bitcoin is better than banks, this is not related to fees

ye for real, fees on btc are pretty high in case of purchase and transaction. It's not definetly the crypto to use for make payment, like ethereum, it's just the virtual gold to hold and see the price growing.

If you invest in something, it has a cost, even if you don't realize it (it can be a hidden cost). Also the best investments usually has higher risks as well. But the high risks are not the connotation of the higher fees the two things are independent. Bitcoin won't be more risky because of the higher fees, because fees are not constantly high, only when the mempool is full. When the mempool is full, you have to start a transaction with a higher fee to be sure that the transaction gets confirmation soon, but this doesn't cause the risk to be higher.

But bitcoin is now being used as an asset to make more money, not to spend in restaraunts, or in a freeshop.

Would yo pay $7 fees for a coca cola and a little sandwich? I guess that you wouldn't, and me too. Because there is no sense in paying those kind of fees just for a tiny transaction. That is the main reason of why it would never be like all the other currencies who are able to be used for this kind of purchases.
But it would not make bitcoin useless, it would be the opposite because people would put their money in here only to grow their money.

I see bitcoin's primary use case continuing to be store of value for a long time. I don't think we're close to adoption as a currency we transact with on a daily basis. I think some other alts may even be better suited for that, like Litecoin. The other thing is, why would you want to spend something that you know is only going to appreciate? For now, BTC is for hodlers.

Yes there are many people avoiding bitcoins due to high transaction fees and I think it will be fixed soon. Bitcoin is mainly used for long term investment like gold and currently we can't use it as currency maybe in future we can but for now we can only use bitcoins as an asset like gold.

Do not worry about fees , i think the core team will update and will be a smaller fee than now . Also you should keep your bitcoin even if it will have big fees , at least you get lot of profit

Hardly anyone is using it as a currency and it's possible hardly anyone ever will.

No matter what the fee situation is, and it's possible there'll be developments that reduce them to tiny amounts, no one wants to spend something that might be worth more tomorrow.

Bitcoin has already grown massively. Banks charge transaction fees...go to an ATM that isn't from your bank, try to transfer money from account to account multiple times a month, wire transfers, cashier's checks.

Anyone who has even the slightest understanding of how cryptocurrencies work knows that fees is a problem of all cryptocurrencies, because there's not enough space and bandwidth to process enough transactions to be used as a currency. All those coins that claim to be scalable with their 4-8 MB blocks or bigger are in fact having cheap fees only because no one uses them, so if all PayPal users switched to Bitcoin Cash, for example, its fees would skytocket to something like $30 per transaction, while the node count would drop to a couple of data centers, defeating the whole purpose of cryptocurrency.

Why? i dont see it as a bad thing, it is the opposite for me. We dont want to pay taxes, we dont want to pay fees, but those fees are the only thing who make transactions go through smoothly.

If you dont want to pay fees for your TX's, then dont do it, nobody is telling you that paying those fees is an obligation, you can put 0 fees and still wait some days until it gets confirmed.

The fees are obviously going to be fixed soon, but they are not going to be less than $10 in a few months from now, because they have always been 0.001 - 0.0006 since bitcoin was $500, so if bitcoin goes to $10k, then dont complain, because the fees are going to be at $6 - $10 at least.
 

You can still perform transactions using smaller transaction fees. You will have just have to wait longer. Don't want to wait and prioritize your transaction? Add higher fee and get your transactions confirmed within few minutes.
Its true that we can't use bitcoin currently for doing smaller transactions due to waiting time, but this might improve soon.

for now indeed it's not a good option to take a long ride,
because the fees keep higher from time to time and also there will be a jam sometimes whenever we're doing a transaction.
but it'll not last forever,i believe they're trying to figure it out how to make it cheaper,easier and faster.
that is why we heard about Lightning Network and something like that.
it's just matter of time for us to solve it,
so it's not really a bad choice if we're investing our money on it.
plus it's a discovery and modernization need us to find something else to help us in our life.
i believe Bitcoin can be a thing that will help us in the future facing a modern technology

Don't bother the transaction fees if your plan is for long term. It will be settled in the long run. We wil get the benefits of believing and hodling bitcoin not today. So just keep on believing, it will pay off.

The thing is that it can last as long as people will continue to buy into it. Most people right now are buying into cryptos for the first time and are used to the "normality" of having to pay a 5 or 10 USD fee occasionally. Granted these fees are covered by holding(you make a return on holding and can pay the fee).

But most people who haven't been holding also don't like this. I dunno. I expect Core to come out with an upgrade to 1.25MB blocks soon.

Unfortunately we have reached the point of admitting that the use of bitcoin is no longer viable as a true currency for daily use, as previously thought. Now it only counts as a system to speculate and make money, and not necessarily to modify the enslaving rules of the current banking system.