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1  Bitcoin / Development & Technical Discussion / Question about fees and transaction size on: November 30, 2017, 05:31:46 PM
Alright, so today I was writing a piece of code integrating BTC into my "Business" and I realized a huge flaw with use of BTC economically. Please prove me wrong.

Let us take a small business named Juice4Days that sells cups of orange juice to customers. Each cup is worth 2$ according to BTC/USD exchange rate. Let us also estimate that Juice4Days sells 20 cups of orange juice each day (using only BTC of course). If we assume that BTC/USD exchange rate stays the same, Juice4Days accumulates $14600 in one year on their single BTC address. In one year, the owner of Juice4Days, Chad, decides to send total revenue to his other address for safe keeping. This is where Chad stumbles upon a huge problem:

If we assume that each cup sold was added to Juice4Days BTC address as an input carrying approximately 180bytes of data, we get that the overall size of Chads transaction to his safe keeping address will be 180Bytes x 7300Cups = 1314000 Bytes. According to bitcoinfees.earn.com "The fastest and cheapest transaction fee is currently 0.0000023 BTC/byte", this means that Chad will have to pay 1314000 x 0.0000023 = 3.0222BTC for his transaction.

Chad will have to pay more in transaction Fees than he has made selling his amazing orange juice.

Where did Chad go wrong?  Roll Eyes

Please explain to me, I really want to know how Chad could have improved his system to minimize transaction fees.

P.S Even if Chad pays the lowest possible transaction fee per byte he still has to pay 1236.00 US Dollars. Add to that the possibility that his transaction may never get confirmed.
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