[2016-11-26]High Transaction Fees Remain Despite Lack of Network Congestion

[WishICanTurnBackTime]

High Transaction Fees Remain Despite Lack of Network Congestion

Transaction Fees Are Still Rather High

One could argue this has to do with users getting used to higher transaction fees. If that is the case, it is anything but positive for the future of Bitcoin. Cryptocurrency gains traction due to lower transaction fees. Paying more money to send a transfer would remove one of the currency’s most appealing features.
Another possible explanation is the general concern over transactions not confirming quickly enough. This could explain why some users default to a higher fee than suggested. It is difficult to determine if this is the case, though. Then again, multiple network congestion events can have such an effect on the overall community.

http://www.newsbtc.com/2016/11/26/high-transaction-fees-remain-despite-lack-network-congestion/

[yayayo]

I couldn't disagree more with this assessment. In my opinion transaction fees are still too low, because spamming still happens. Paying 10-20 Cents for fast confirmation is not at all excessive, considering ordinary transaction sizes (> 0.01 BTC). You can still get confirmation for less, if you are willing to wait a little longer. Fees must reflect the value of the service provided.

The most appealing feature of Bitcoin is definitely not cheap transactions as the article is trying to mislead its readers. You can have wire transactions for free all across the EU for example. The most appealing feature of Bitcoin is its decentralized nature, which allows for worldwide payments without intervention by control freaks such as banks and governments.

The constant whining of lolly purchasers is embarrassing. Maybe the solution would be disallowing no and ultra low fee transactions altogether. That would make transaction spam more costly, considering that 80% of the recent transaction backlog consists of ultra low fee transactions.

In future block rewards will be going down and fees are needed to compensate miners for their service. That's why we need a healthy fee market.

ya.ya.yo!

[1Referee]

I couldn't disagree more with this assessment. In my opinion transaction fees are still too low, because spamming still happens. Paying 10-20 Cents for fast confirmation is not at all excessive, considering ordinary transaction sizes (> 0.01 BTC). You can still get confirmation for less, if you are willing to wait a little longer. Fees must reflect the value of the service provided.

The most appealing feature of Bitcoin is definitely not cheap transactions as the article is trying to mislead its readers. You can have wire transactions for free all across the EU for example. The most appealing feature of Bitcoin is its decentralized nature, which allows for worldwide payments without intervention by control freaks such as banks and governments.

The constant whining of lolly purchasers is embarrassing. Maybe the solution would be disallowing no and ultra low fee transactions altogether. That would make transaction spam more costly, considering that 80% of the recent transaction backlog consists of ultra low fee transactions.

In future block rewards will be going down and fees are needed to compensate miners for their service. That's why we need a healthy fee market.

ya.ya.yo!

It all depends on the level of usage. If you just send out transactions occasionally, then the current fees won't be a big deal for you. But if you run a service or web shop where certain products only cost you a few bucks, then the current transaction fees will be a big blow for a lot people. Especially when you consider how stingy the majority of the people here are.

If you compare the current price with how the price was last year, then the value of Bitcoin has more than doubled. So in that regard, something that would cost you 0.015BTC back then, is something that you can purchase for less than 0.0065BTC right now. And the higher the price goes, the lower the amounts in BTC will be that people are transacting with. You can't mark that as dust or shitty transactions. Micro transactions are important as well. It's something that is part of the Bitcoin market.

[fiscorcle]

I do know how this has been to others experiencing this happening to them.
I sent 0.04btc and it has been nearly an hour now without one single confirmation.
I put on the same transaction fee that I always have and it usually has atleast 1 confirmation after 5 minutes. What the hell is going on with them wanting more for sending all the sudden?

[Carlton Banks]

What the hell is going on with them wanting more for sending all the sudden?

Economists call this "price discovery".

You are typically shielded from the price discovery mechanism in this "capitalist" consumer society, lol. Bitcoin doesn't do that, not because there is a design intention to allow miners to set unreasonable prices, but because Bitcoin has been designed to be a limited package of resources. And for good reasons.

This can benefit you a great deal, as making gains in the value of your BTC assets is like every Gordon Gekko aspirant's dreams come true. But the transaction capacity on the network is limited also, as processing Bitcoin transactions requires significant resources to do. Miners can be relied upon to be sure to choose the transactions with highest fees, they're only giving that additional revenue away to their competitors if not.

So Bitcoin is a real financial asset, with all the freedoms and the limitations that brings.

[panju1]

A lot depends on how Bitcoin wallets' default fee is set. If it is dynamic, it would have adjusted to the lack of network congestion.
Otherwise, people would continue to use fees which they know have worked in the past.

[knop]

a lot of transactions
tired of waiting for confirms nevertheless paying ok fees

[TraderTimm]

A "fee market" was part of the plan, Satoshi knew this when he implemented the reduction of block rewards for miners.

"High Fees"? Yeah, "high" my ass. Considering how you can send very large amounts for a pittance doesn't exactly scream "too high". Perhaps people are confused - a global remittance network takes resources, and fees are used to make it work.

But still, we get these idiots spouting "too high" and then wondering why their transaction takes a few hours instead of 10 minutes.

Idiots.