Bitcoin Forum
May 23, 2024, 04:21:24 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Who gets the fees?  (Read 796 times)
Ascholten (OP)
Full Member
***
Offline Offline

Activity: 155
Merit: 100


View Profile
October 14, 2012, 11:11:59 AM
 #1

When a transaction happens that incurs a fee, who gets the fee?
ON that, how would one get into the 'handling' of transactions to participate in the collection of fees?  Wouldn't handling the transactions kind of make them like a bank or routing service?

Finally,  aren't bitcoins finite?  in that, only so many are going to be made, and once that number is reached, no more will come out?

With bitcoin gaining popularity, more and more transactions are going to be made, many incurring fees.   Eventually isn't the number of bitcoins going to severely diminish because all the 'fees' are
going to eat them away.   Kind of like sticking a jawbreaker in a gallon jar of water and stirring it,  it will go round and round for a while, but eventually disappear as it erodes away (fees).

Do we have to rely on the 'fee/ tax' collectors' to buy something or some other action to put the coins back into circulation then?  Doesn't that kind of make them the big bankers of the bitcoin world then, much like the ones we have now with our other currencies, which this is supposed to avoid?

Just thinking.

Aaron

Bit Visitor      You view the page / ads and get paid. 
Coin Tube    You watch videos and get paid.
dust
Hero Member
*****
Offline Offline

Activity: 840
Merit: 1000



View Profile WWW
October 14, 2012, 11:15:32 AM
 #2

Fees go to the miner (often a mining pool) that includes the transaction in a block they have solved.  The coins paid as fees never leave circulation.  As the block reward diminishes over time, transactions fees will eventually be the primary source of income for miners.

Cryptocoin Mining Info | OTC | PGP | Twitter | freenode: dust-otc | BTC: 1F6fV4U2xnpAuKtmQD6BWpK3EuRosKzF8U
Ascholten (OP)
Full Member
***
Offline Offline

Activity: 155
Merit: 100


View Profile
October 14, 2012, 11:21:25 AM
 #3

Thank you for the reply dust.

Aaron

Bit Visitor      You view the page / ads and get paid. 
Coin Tube    You watch videos and get paid.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!