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Title: How original Bitcoin client fee scales? Post by: bitdude on November 19, 2013, 06:56:22 AM Last time I sent cca 1 BTC to my father's account the original Bitcoin client I use (version 0.8.5) required me to pay 0.0015 BTC fee. Now, BTC is reaching $1000 in China, making this fee 1.5 USD. That is not a small fee. I think we can't say it is unrealistic to work with scenarios of BTC being valued $10000. Would fees be extreme by then? Or is there a possibility (using the original Bitcoin client) to really pay something like 0.05 USD that I find a reasonable fee for "small" transactions such as 1 BTC? How about 0.1 BTC transactions or even smaller transactions? Thanks for explanations.
Title: Re: How original Bitcoin client fee scales? Post by: DannyHamilton on November 19, 2013, 07:30:50 AM Last time I sent cca 1 BTC to my father's account the original Bitcoin client I use (version 0.8.5) required me to pay 0.0015 BTC fee. Now, BTC is reaching $1000 in China, making this fee 1.5 USD. That is not a small fee. I think we can't say it is unrealistic to work with scenarios of BTC being valued $10000. Would fees be extreme by then? Or is there a possibility (using the original Bitcoin client) to really pay something like 0.05 USD that I find a reasonable fee for "small" transactions such as 1 BTC? How about 0.1 BTC transactions or even smaller transactions? Thanks for explanations. The current recommended fee is 0.0001 BTC per kilobyte. Unless you've received a significant number of useless expensive dust outputs, the typical transaction is less than 2 kilobytes. As such, your fee should be less than 0.0002 BTC (at $1000 per bitcoins that's $0.20). In the past as the exchange rate has soared, the recommended fee has been reduced. I think this has happened 3 or 4 times already. If the exchange rate gets to be significantly above $1000, I'd expect that the recommended fee will be reduced again. Title: Re: How original Bitcoin client fee scales? Post by: malevolent on November 19, 2013, 09:37:11 AM In the past as the exchange rate has soared, the recommended fee has been reduced. I think this has happened 3 or 4 times already. If the exchange rate gets to be significantly above $1000, I'd expect that the recommended fee will be reduced again. Not necessarily: http://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg03230.html Title: Re: How original Bitcoin client fee scales? Post by: DeathAndTaxes on November 19, 2013, 09:43:09 AM Not necessarily: http://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg03230.html Interesting. It is a concern in the short term but longer term it should be solvable. 1) The current block broadcast system is relatively inefficient. Miners broadcast all transactions although it is highly likely peers already have the tx. Instead block could consist of just header and tx hashes. If one wanted to reduce latency further it would be possible to use a smaller hash in block broadcast. Since collision would only occur against tx in memory pool a 128 bit or even 64 bit hash would be sufficient. 2) The block subsidy will drop to 12.5 BTC in <3 years. The orphan rate vs tx fee is altered by the large block subsidy. As the block subsidy is reduced it becomes less of an issue. Still thanks for the link it appears the orphan rate is higher than expected and that is going to constrain fees in the short term. |