Transaction fees

[BitMaxz]

All transactions were made with a minimal fees. I mostly prefer the transaction fees of 0.0002btc. Everytime I too have experienced lot confirmations in a short time.

For now i think its if you are in default fee you can pay a fee depends if how much you will send.. just like on free fee like coinbase you are just send 0.005 to other address with fee 10k sat or below but the result is low fee and medium priority in the block chain but they are the same speed as 0.0002 fee transaction..  for now bitcoin has a problem in speed transactions..

[fred21]

During the part where the user is solving the mathematical problem, the 25BTC is already hashed in the block, together with the transactions. Solving the mathematical problem means that the block must match a specific target for it to be accepted as valid. If the block target is not reached or "the math problem is not solved", nodes would not see it as valid and the coins/transactions would remain non-existent or unconfirmed. It is more of like a lottery but generally, the more hashrates you have, the better chance you would have.

so, transaction are accepted and validated only in blocks that are owned by miner having met the target ?

[fred21]

I personally think that when you start mining bitcoin with soiftware "bitcoin core" (for example), you earn a tiny amount of bitcoin every month.

This tiny amount of bitcoin that you earn every month is the result of transaction fees that you earn.

So according to me, you don't need to solve and meet the target in order to accept transaction and earn transaction fees as a miner.

[mrcash02]

To pay less fees (at least on Blockchain.info that i use) move high transactions only. If you move many small amounts like 20.000, 30.000 satoshi you will pay highest fees later (very common between faucet users). I try to move min 100.000 satoshi. This way i pay lowest fees.

To do it on FaucetBox, set a highest threshold there, on your address statistics page.

[michietn94]

I'm using blockchain online wallet.
What If I'm accidentally set custom fee from 0.0002 into 0.02 , does it means that I donate the miner very generously ?
Is it possible for refunding ?

[--Encrypted--]

I'm using blockchain online wallet.
What If I'm accidentally set custom fee from 0.0002 into 0.02 , does it means that I donate the miner very generously ?
Is it possible for refunding ?

first question, yes.
second question, no unless you contact the miner (or pool owner) and get them to agree to return the money.

[fred21]

To pay less fees (at least on Blockchain.info that i use) move high transactions only. If you move many small amounts like 20.000, 30.000 satoshi you will pay highest fees later (very common between faucet users). I try to move min 100.000 satoshi. This way i pay lowest fees.

To do it on FaucetBox, set a highest threshold there, on your address statistics page.

Thanks for your reply.

However this was not what I was asking.

What I would like to understand is :

when you mine bitcoin, you earn small amount of bitcoin (without earning the 25 BTC reward to meet mathematical target). This small amount of BTC you earn is the result of transaction fee earned because you are accepting transaction into your block.

Is what I assume above right? or am I misunderstanding something?

[GreenMatrix]

Hello VirosaGITS,

Is there a risk that transaction fee won't decrease as BITCOIN get more and more value compare to fiat currencies?

thanks

Yes, the fee per TX would go down if "we" increased the block size. Or up if not as people compete for the same limit size per blocks. I particularly do not see a problem with this however.

Anyhow, the TX fee is more tied to available space than BTC's value.

Great to know

[odolvlobo]

What I would like to understand is :

when you mine bitcoin, you earn small amount of bitcoin (without earning the 25 BTC reward to meet mathematical target). This small amount of BTC you earn is the result of transaction fee earned because you are accepting transaction into your block.

Is what I assume above right? or am I misunderstanding something?

Your understanding is not complete. A miner validates transactions, gathers those transactions into a block, and attempts to add that block to the block chain. A successfully added block earns the miner all the transaction fees in the block plus the 25 BTC "subsidy".

[romero121]

I'm using blockchain online wallet.
What If I'm accidentally set custom fee from 0.0002 into 0.02 , does it means that I donate the miner very generously ?
Is it possible for refunding ?

first question, yes.
second question, no unless you contact the miner (or pool owner) and get them to agree to return the money.

Well only it depends upon the miner who gets the transaction fee. I believe return of bitcoin is highly impossible if you were not able to get contact with the miner or pool owner.

[fred21]

Your understanding is not complete. A miner validates transactions, gathers those transactions into a block, and attempts to add that block to the block chain. A successfully added block earns the miner all the transaction fees in the block plus the 25 BTC "subsidy".

thanks for your reply.

What happens if the miner doesn't succeed in adding the block into the blockchain : are the transactions that the miner gathered into the block "unvalidated"?

[unholycactus]

Your understanding is not complete. A miner validates transactions, gathers those transactions into a block, and attempts to add that block to the block chain. A successfully added block earns the miner all the transaction fees in the block plus the 25 BTC "subsidy".

thanks for your reply.

What happens if the miner doesn't succeed in adding the block into the blockchain : are the transactions that the miner gathered into the block "unvalidated"?

You should view it like this, everyone is competing to solve a block.
If you aren't the first to do so, everything starts over and you move on to the next one.

[fred21]

Is the number of block infinite or eventually it will stop generating new blocks?

[alyssa85]

Is the number of block infinite or eventually it will stop generating new blocks?

The number of bitcoins is fixed, but the number of blocks is not. Theoretically once the maximum bitcoins are produced, the blocks should continue to be mined, confirming new transactions, and the miners should be paid with transaction fees. In theory, the number of blocks will continue to be made as long as people use bitcoin, keep sending transactions and the miners still think its profitable to mine. Of course if the price of BTC went to zero, i expect the miners will abandon it- when the last miner stops, it's over!

[Amph]

Is the number of block infinite or eventually it will stop generating new blocks?

no the number of blocks is around 7M, and the last block should end around 2140 probably early due to the diff retarget, that can not keep with the suddenly hash increase

[fred21]

thanks for your reply.

your answers are contradictory. Who is right between Amph and alyssa85? Even if the number of BTC is finite is the number of blocks infinite?

[pawel7777]

thanks for your reply.

your answers are contradictory. Who is right between Amph and alyssa85? Even if the number of BTC is finite is the number of blocks infinite?

Alyssa85 is right, not sure where Amph got the idea of finite number of blocks. ~2140 is an estimate of last block with fixed reward.

[fred21]

So until approximately year 2140, every new block generated will be with fixed reward (x BTCs per block generated reward). But after this date, block will be generated but with no reward at all. however, those blocks will still collect transaction fee.

Am I missing something? 

[pawel7777]

So until approximately year 2140, every new block generated will be with fixed reward (x BTCs per block generated reward). But after this date, block will be generated but with no reward at all. however, those blocks will still collect transaction fee.

Am I missing something? 

Correct.

Although 'fixed' block rewards will likely become irrelevant long before year 2140. 90% of the 21m total supply will be mined in ~2021-2022. See this for reference:

https://en.bitcoin.it/wiki/Controlled_supply

The initial idea was the hope that Bitcoin usage will grow significantly to the point when transaction fees will become sufficient incentive for miners to carry on.

Although, with currently dominating vision of keeping small blocks and pushing users off the blockchain, I don't know what's the long term plan (if there's any).

[odolvlobo]

So until approximately year 2140, every new block generated will be with fixed reward (x BTCs per block generated reward). But after this date, block will be generated but with no reward at all. however, those blocks will still collect transaction fee.

Am I missing something?  

That is basically it, but also: the subsidy (block reward is subsidy + fees) is halved every 216000210000 blocks (approximately 4 years), until around 2140 when it goes from 1 satoshi to 0 satoshis and the block reward is just fees.