Bitcoin Forum

Many are holding the bitcoins rather than spending it. If there is many transaction then automatically fee will be reduced due to large number of transactions. But, many are just holding it to get gain. if this trend continues, we will see a fall sooner or later.

If small transactions not approved fast then many will move out, leaving big fishes take out all money and we are facing a downfall.

Fees and confirmation time has to be reduced in some way.

I think that the relation between transaction volume and transaction fees is the opposite.
The more transactions,the higher the transaction fees.The number of transaction increased actually during the last month,so the fees increased as well.There aren`t many websites where you can spend your btc.
Big platforms like Steam and Fiverr cancelled bitcoin purchases because of the high fees.

it's the opposite when the demand and the number of transaction increases the fees go crazy and the blocksize also go up . Bitcoin is still having the problem of scalability and if people hold that wouldn't effect the market really ,what would effect it is if institustions started to accept bitcoin and hold.

You are right, maybe the price will decrease if there are more transactions, but if bitcoin continues to go up in price, the transactions will also go up. It's a vicious circle.

Many of the noobs who have bought, have done so via Coinbase, and are still blissfully unaware of bitcoin's scalability and fees problems. It will take a few months for them to realise it is unusable. At that point they might switch into an alt, if they've caught teh crypto bug, or cash out into fiat and give up on crypto.

In my experience, many sites increses there transaction fees due to high demand for there site, directly proportional way i.e. increase in transaction fees with increase in number of transactions.
So due to this high transaction fees, people's hold bitcoins and wait for increase in price. And that is obvious, why one will do trasactions by spending that much high fee?

This is why some of us are spending about 20% of all the bitcoins we buy. If you would have spend say $1000 {Fiat} on

something and you can spend that with Bitcoin, why would you not do that? You would be helping to support merchants that

supports Bitcoin. We are actively looking for merchants in our area that accept Bitcoin and we {recruit}  ::) new services all

the time. If I buy beer over the weekend? Then I take that budget and convert it to bitcoins and then buy that beer at a

merchant that supports Bitcoin.  ;D

Clearly you need to spend some time reading about how Bitcoin works. 

There cannot be more transactions confirmed unless the block size is increased; another method of increasing capacity is implemented; or the average size of a transaction in bytes decreases.  As it is, blocks are pretty much all full.

I'm fully in favour of spending BTC in merchants when it's practical to do so, but the vast amount of transactions being sent for speculative purposes is making it far less practical.

You're a bit too early discussing things like this on your own my friend. I find it hard to believe that you understand the relationship between demand and supply to the movement of prices in the market. Also, the movement of fees in relation to the size of bytes per transaction.
Study hard buddy, I remember myself when I was in your place. Difficult at first.
As an explanation, like what others have said, the more transactions made, the higher the fees. More transactions causes traffic. That is why there are fees needed to accelerate some of the transactions to be confirmed or just wait for it like a traffic enforcer. Get that ?

Yes I agree with your statement. Bitcoin today is being used not for small transactions but rather for storing of wealth. Its a far cry from what the original designed by Satoshi. And unless the high tx fees and slow confirmation time is solve, it will take some time before we can really used it to pay someone from the other side of the planet.

And maybe this is the main reason why online retailers like Amazon, Ebay and even the rumored McDonalds is still not getting into bitcoin. Even Steam already stopped accepting bitcoin because of this reason.

I think you are very wrong, the more transactions the cost will increase and bitcoin will also increase rapidly as more and more demand.
if more and more hold the bitcoin I think bitcoin will drop slowly, because surely many are switching to another coin.

You seems to be misunderstood my point, When transaction increases there will be more earning for miners. Thus, they will pass the transaction quickly, if the transactions are less then they will put a high price to approve a transaction.

More transactions causes traffic but earning and demand increases the mining capability as well.

I understood what you are saying, there are many accepting my point as well.


If the small transactions are not passed with less fee this will die quickly.

The main problem here is the fees, if that is not lower down then there will be no one accept bitcoin and eventually big fishes cash out and put medium holders in dark.

Indeed is the opposite, currently there are so many ongoing transactions that the amount of miners can't handle them.

I think everyone wants to hold a bitcoin. Because from now to the end of the year, with such growth momentum, bitcoin can increase more. so what should not hold :)

Yup. Small and medium size investors are about to get squeezed out of the picture

Bitcoin is rising too high and this is the trend of emerging investors.

A lot of people will be trying to keep their coins. There won't be that many people that can afford to purchase a whole Bitcoin soon.

I agree with you dude, maybe bitcoin created just for earning or being profitability not for transaction method. Bitcoin fluctuated depend on the demand and supply of the coins, high demand less supply, and if less supply many holders of bitcoin and also transaction will too slow. So they think now much better to hold than to spend their bitcoin at this scenario. This is make bitcoin so delayed and have traffic in every transactions.

You have a point we should encourage people to use bitcoin to buy stuff online and offline because this is what bitcoin is intended to use this is not meant to hoard bitcoin it will drop soon if these trends continue but who can stop these people from holding bitcoin everybody wants to make money of course.

The demand is just continuing to increase and if they will hold it, it is their choice we cannot control it, afterwards they will still spend it in the future so it is normal, if I have a lot of money I will do the same to hold my bitcoin as much as I can so I can earn a lot more that what I am earning in my current job that don't give much or don't return my efforts.

If it is a newbie then they might switch to a different coin after this kind of event, but if it is a veteran then they will keep on the bitcoin flow, I really think there are still many buying for bitcoin and are really aware of the scalability and high fees but they can sure understand the situations they are getting at, at investing with bitcoin there is a risk involve with it, and I think newbies needs guidance on how is the right way to earn, and knowledge is the possible solution for this.

People naturally would pursue the one that would bring the most profit to them and they would prefer not to spend now then wished they had wait a little longer because the value has increased greatly since the last time. Just like the evolution of coins when it was made with gold people would hoard and then mine because it worth more than the face value of it. There is nothing we can do about that even in fiat, while some are spending their money others are keeping to generate more money.

Whether that will reduce transaction fees, is something I doubt happening. There are several transactions that have happened that takes several days to confirm and the fee didn't even reduce what would then happen if transactions are doubled it would run to weeks to confirm. Other ways to reduce fees are welcome but not increase in transactions.

Yeah, I agree that currently a lot of people just hold BTC. At the same time a lot of BTC transactions are performed every day - new investors, traders and etc.

This comes as no surprise. As bitcoin rises in value using it to transact value just keeps getting more and more expensive. It's no longer convenient to use BTC to transfer small amounts of cash but other alternatives are coming in to fill the gap temporarily. We're hoping that solutions like the lightning network will have a bitcoin specific solution to the issue on the longer term but needs more testing still.

I am very much sure that the market value of bitcoin will keep on going up and because of this, the transactions will also go high. This is just the start and there is still lot more to come. Bitcoin is going to make a great name in the world and it will give much benefit to all those who will get associated with it one way or another. Moreover, we may also see bitcoin getting legal across the entire world.

Do you have a figure you would like to cite? Steam did drop Bitcoin as a payment option, but other than that there hasn't been many news in that end.

You also got the relationship between transaction fees and transactions backwards. When there are no transactions in the mempool, you have instant priority. You could probably get away with not paying a fee. If there are a lot, then you will have to outbid everyone else's transactions to get quick confirmation.

Small transactions haven't been viable for Bitcoin for a while now and it's as strong as ever. It's still quite ideal for larger transactions, at least.

best way to accept using 2x will reduce price more.

also we can stop sending bitcoin until number of unconfirmed transaction down

In fact, the number of people who use bitcoin to do business is not so much as before, and more of it is as a kind of speculation, but more people are speculating, resulting in more handling fees.

beside all these i think the bitcoin is used for transaction are getting low because of the other coins the people are also moving towards them they are buying altcoin for making future gains. but with this all we like to use bitcoin for many transactions in the past and now in the future. some time the demand for bitcoin are very high due to which the transactions will automatically high.