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Author Topic: Do increased Bitcoin fees benefit anyone else except miners?  (Read 153 times)
DooMAD
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April 30, 2024, 10:58:54 PM
 #21

I honestly can't tell if OP is just a little idealistic and naive, or if this is something else.  Either way, there seems to be a noticeable and distinct trend of complaints from them about Bitcoin.

The question is backwards.  If Bitcoin is not secure, then no one benefits.  Why does everyone think you can have the best available security with very little cost?

Fees are driven by demand.  Clearly there are times when Bitcoin is in high demand.  Some people are seemingly still prepared to pay high fees during periods of high demand and other people believe this to be unfair.  Blame whoever you like, invent whatever conspiracies and claim whichever transactions are somehow illegitimate.  But the fact remains that none of you have come up with anything better yet.  So deal with it.     

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btc78
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April 30, 2024, 11:22:11 PM
 #22

The sender is the party paying the fee and they are definitely not benefiting from the fee.
Well one would argue that if a sender pays a higher transaction fee then their transaction would be prioritized by miners thus letting their transaction go through faster. But this system really doesn’t leave any choice for the senders. So in the end they just have to pay even if it’s out of their will.
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do these increased fees help bitcoin to be a better form of digital cash?

No not at all if anything people are starting to complain about how expensive the transaction fees are. We can’t even make small transactions as the transaction fees would just be too expensive. It hinders us from actually using bitcoin as a currency.

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May 01, 2024, 04:39:52 AM
 #23

With the introduction of ordinals to the Bitcoin protocol
Ordinals is NOT part of the Bitcoin protocol. It is an attack vector that is exploiting a flaw in the protocol and what they define as "Ordinals token" is just arbitrary data being injected into the transactions.

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My question is who do these high fees benefit?
Back in 2017 some shitcoins tried to benefit from it by advertising themselves as the "better bitcoin" and getting pumped. For example ethereum started the flippening nonsense and is the biggest shitcoin that got pumped back then until its own fees skyrocketed higher than bitcoin's and the dumping began leading to a big crash that it couldn't recover from to this day.

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May 01, 2024, 04:45:15 AM
 #24

No one benefits from the increase in fees apart from miners, because everyone except miners, in the Bitcoin ecosystem hopes that fees can be as low as possible so that it will help them complete transactions more quickly and cheaply. But the problem is that this will not happen on the Bitcoin network, because the Bitcoin network is often congested and that makes fees even more expensive. Even though the fees are now back to normal, congested problems can occur again on the network and that makes fees even more expensive.

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May 01, 2024, 05:28:58 AM
 #25

In my opinion, the beneficiaries of the situation with high Bitcoin commissions are the miners and founders of some alternative cryptocurrencies.  It is quite possible that these are the same persons.  When users refuse to make transactions in Bitcoin due to high fees, they remember the existence of coins such as Bitcoin Cash and LiteCoin. 
The founders of stablecoin projects receive even more benefits.  At the same time, cryptocurrency users forget that stablecoins are essentially centralized projects (unlike Bitcoin). 
However, high fees are not a disaster for Bitcoin, since it is currently more of an investment financial asset than a means of payment.

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May 01, 2024, 05:29:43 AM
 #26

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This month the miners rewards were cut in half due to the halving. At the same time fees skyrocketed due to increased volume as a result of the introduction of Runes.  I think you would have to conclude that ordinals which include Inscriptions and Runes were introduced to increase the transaction fees to offset the loss in revenue to the miners because of the halving that just occurred. It was no accident that Runes were  launched on the day of the halving.

There are a couple of key points to consider: First, If miners can change Bitcoin to increase the fees is Bitcoin really decentralized? Second, and most importantly, do these increased fees help bitcoin to be a better form of digital cash?

I think that you are getting into a conspiracy theory here.
Can you prove that the BTC miners openly support the Runes and Ordinals? If you can't prove such connection, then you are clearly speculating. The BTC miners were doing just fine in the last few months, when the transaction fees were normal. I don't think that they would try to ruin the blockchain by adding useless stuff like the runes and ordinals. And no, the miners cannot "change Bitcoin". Lets assume that the miners are using runes and ordinals transactions to boost the transaction fees on the blockchain. Wouldn't they have to pay higher tx fees as well?

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May 01, 2024, 03:44:52 PM
 #27

The miners are the main beneficiaries of the high bitcoin fee; that's also the reason why some people speculate that they might have a hand in this BRC-20 and rune on the Bitcoin protocol.
 
Some also said the high fee contributed to helping them hold their bitcoin rather than selling it off since the fee was way higher. It's enough of an excuse for them to hold on instead of risking paying that high fee.

No matter how we look at it, I don't see any advantage to the high fee for any Bitcoinner; it's just the miners revenue increasing.

Miners are strictly the beneficials of Bitcoin fee, if I may say, this is a good advantage for hodlers to continue holding because you cant be using a high fee in transacting a small amount instead of doing such the best option is to hold to the fullest, I have checked it closely, is it that the system can not accommodate many transactions at the same, if yes, why was it not programmed in way that it can accommodate more transaction at the same time, this is more reason why some persons doubt if Bitcoin is really decentralized digital investment, if miners can wake anytime and increase fee then something needed to be done to correct the continues reoccurrence of this because this alone can discourage more investors.
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May 01, 2024, 04:02:10 PM
 #28

No one benefits from the increase in fees apart from miners, because everyone except miners, in the Bitcoin ecosystem hopes that fees can be as low as possible so that it will help them complete transactions more quickly and cheaply. But the problem is that this will not happen on the Bitcoin network, because the Bitcoin network is often congested and that makes fees even more expensive. Even though the fees are now back to normal, congested problems can occur again on the network and that makes fees even more expensive.

First: I would not consider average transactions costing $3 US normal.  That is a 300% increase over normal from just a short time ago.  300% is a huge increase in pay for the miners.
Second: solutions to the Bitcoin speed problem have been solved by other Bitcoin forks and Bitcoin developers don't seem to interested in working to solve these problems.

The Bitcoin developers increased the block size to 4MB, a 400% increase in size, without improving the speed of the network.  They use this additional space to store inscriptions!!!?Huh
This is obviously being driven by something other than "peer-to-peer electronic cash".  All you have to do is use the 4MB for transaction storage and you instantly increase the capacity of the network by 400% which would speed up transactions for an equivalent fee effectively lowering fees.

This is not rocket science!

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