The impact of micro-transaction on Bitcoin

[Bitcoin Guy]

My concern is that if Bitcoin can be an effective medium of exchange tool? 

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

Please provide your feedback.  Thanks.

[flower1024]

Because of the high fee I already shifted to ETH for smaller amount transaction if a seller is ready to accept. But if any product is more than a couple of hundred dollar worth still bitcoins can be used but anything smaller than that amount I don't it is worth to pay such high fees. As long as Bitcoins are limited in quantity its prices will grow because of its demand and it will become like a gold in cryptocurrencies.

Due to this, some other potential alt-coins will get a chance to grow its market value because many people will use these alt-coins for smaller amount transactions.

[RoommateAgreement]

Because of the high fee I already shifted to ETH for smaller amount transaction if a seller is ready to accept.

but no merchant accepts ethereum! it is not even a currency to be accepted as payment. and besides the fees are pretty high there too, they are getting very close to $1 now!

and you will have a much better chance finding a merchant that accepts Doge coin or Litecoin instead and they have a much lower fee and a much better security with no bugs.

[coynedterm]

My concern is that if Bitcoin can be an effective medium of exchange tool? 

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

Please provide your feedback.  Thanks.

This is really true , earlier I was making the topp-up for my operater network with very small amount of the fee , But in the current time if we want to make the reacharge of 3-4$ then we need to pay the 3-4$ minimum fee that is totally worst thing for us , so a big problem in the Bitcoin is arise that we can't make small deals  of 4-5$ because of the high fee .
But here I don't think that we will face the same problem in the future  because the network of the block chain is looking to increasing the size of the block , so that with the minimum fee we can include the transaction in the block .
Here we can do only wait for this because all network is in hand of the block chain network .

[uneng]

Many persons say bitcoin wasn't made to buy little cheap things. I don't agree, but today that is true. However, bitcoin involves technology on its concept, bitcoin is technology and technology can be always improved, infinitely.
I'm sure at some point there will be any way to make the codes of transactions easier and faster to be solved, or some way to make transactions size smaller. It can lead us to lower fees than now, I suppose.

[carlfebz2]

My concern is that if Bitcoin can be an effective medium of exchange tool? 

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

Please provide your feedback.  Thanks.

When you do make micro transactions then expect fees would really affect you much when you do make such transfers but if you do make it on bulk amounts of transfers then you will not surely feel those fees which isnt a problem at all but yet we do really have different situations speaking of bitcoin daily transactions then we do have different opinions on this one. We cant do anything about this sudden change of fees.

[fanbeila]

My concern is that if Bitcoin can be an effective medium of exchange tool? 

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

Please provide your feedback.  Thanks.

The higher transaction fee is a bigger issue nowadays in bitcoin transactions.Some may think of even switching to other altcoins for smaller fees.But unfortunately,we could not find any buyer accepting any altcoins instead of bitcoin.Then there would be no use in shifting to altcoins for smaller transaction fee.

[davis196]

My concern is that if Bitcoin can be an effective medium of exchange tool? 

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

Please provide your feedback.  Thanks.

I quess that we are all waiting for the scaling to solve this "high fees" issue.
Right now bitcoins looks more like a stock or gold rather than a real currency.
I`m not sure that scaling or Segwit will lower the transaction fees.
All the miners want high fees and more revenue.

[farharhadi]

Why bitcoin is made whether bitcoin is designed by not buying cheap goods, but I agree with the design but bitcoin can be fiat money that you can use to buy cheap goods.

[Kakmakr]

Some of these wallet providers are "stealing" from people. They fail to adjust the fees, when the recommended fee goes down. < They profit from users not knowing what the recommended fees are supposed to be, at the time of the transaction > I always make a screen capture of https://bitcoinfees.21.co/ when I make a transaction via these services, to use as evidence, when I want to take them on. ^smile^

We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^

[btcney]

My concern is that if Bitcoin can be an effective medium of exchange tool?  

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.  

Please provide your feedback.  Thanks.

It's definitely holding back bitcoin's potential a lot. I remember that I used to be abel to get just 0.0003 BTC and have fun with it at a bitcoin casino because i would send the transaction with 0.00005 BTC fee and it'll still confirm within 20 blocks.

It's still a very good medium of exchange, no doubt.

Nowadays i can't even do it with 0.001 BTC, let alone 0.0003 BTC.

The price is definitely mostly speculation, however all coins will have scaling problems. All decentralised coins anyways. Bitcoin will pull through this, trust me

[hase0278]

My concern is that if Bitcoin can be an effective medium of exchange tool?  

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation.  

Please provide your feedback.  Thanks.

The scaling debate might solve this issue if one side wins and I hope that will be the way to lower transaction fees and faster confirmation times. The high transactions would hold back bitcoin's price growth in the long run and because of this it needs to be solved right away. Also higher transaction fees in the future might make some users look for other ways or other altcoins to send money if this continues. If that happens bitcoin will still continue to be an effective medium of exchange for big transactions only and an effective store of value for crypto users.

[Distinctin]

The fee is really getting bigger now, even in exchanges they have increase the fees and the minimum I have to pay is like 2 dollars
for single transaction so this is not really good for micro transaction. I guess we have to look for better alternative.

[Yuuto]

My concern is that if Bitcoin can be an effective medium of exchange tool? 

The reason why I asked is that there are fees associated to each of the transactions and the fees are increasing day after day, so it gets to a point that it is no longer justifiable to use Bitcoin to buy smaller items.  Higher fee becomes required as low fee transactions will be placed in the unconfirmed bucket for long time, if not forever, as no miners are willing to include them in the block to validate it.

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

Please provide your feedback.  Thanks.

It's extremely frustrating to see that you have enough money in your bitcoin address but yet you cannot pay for something because of transaction fees. I just sent a transaction, and it cost me 0.002 btc because it had multiple inputs.

Will this impact bitcoin? Of course it will. People used to use bitcoin faucets but now it's not going to happen. Real life usage is pretty much destroyed as well. No one is going to pay for a cup of coffee for twice the price just cause they're using bitcoin.

Speculation is always going to be a big part of bitcoin, that's not going to change. But in the future, more and more merchants start accepting btc and therefore, btc price will stablize, making it hard for big market manipulators to operate.

[Bitcoin Guy]

I was thinking that one way to lower the transaction fees is to lower the average time that miners can validate a block, but it is not realistic because that means more bitcoins will be mined quicker than what the scheduled amount was planned.  Another thing, which is out of our control, is that for the following 100 years if the price of bitcoins is high enough to compensate the miners, then the transfer fees, perhaps, can stay low.

[TryNinja]

Some of these wallet providers are "stealing" from people. They fail to adjust the fees, when the recommended fee goes down. < They profit from users not knowing what the recommended fees are supposed to be, at the time of the transaction > I always make a screen capture of https://bitcoinfees.21.co/ when I make a transaction via these services, to use as evidence, when I want to take them on. ^smile^

We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^

And why would they do that? Its not like they profit from users paying higher fees. More like the opposite.

Higher fees = Less tx per users to avoid losing money or users moving to another wallet.

Also, I only see the recommended fee going up every day with the constant increase of unconfirmed tx and not the opposite.

[Kakmakr]

Some of these wallet providers are "stealing" from people. They fail to adjust the fees, when the recommended fee goes down. < They profit from users not knowing what the recommended fees are supposed to be, at the time of the transaction > I always make a screen capture of https://bitcoinfees.21.co/ when I make a transaction via these services, to use as evidence, when I want to take them on. ^smile^

We are not only getting screwed by the Bitcoin miners, but by some of these services too. ^grrrrr^

And why would they do that? Its not like they profit from users paying higher fees. More like the opposite.

Higher fees = Less tx per users to avoid losing money or users moving to another wallet.

Also, I only see the recommended fee going up every day with the constant increase of unconfirmed tx and not the opposite.

The answer is simple, they do it because users have no choice in the matter. The Wallet providers will blame the Bitcoin scaling problems and they will try to get away with this as long as
possible. The moment you have a scape goat, you will use that opportunity to exploit people. < Some will complain / some might leave / others will make less transactions > but the majority will stay and accept their excuses.

Do not underestimate the power of greed. < The miners are blaming the Bitcoin developers, so they also profit from this situation >

[niisarearning]

While i was getting some small payment about 2$ or lesser i was giving bitcoin address so easy transfer now its like dream because my lots of transfer being unconfirmed and disappeared it really not worth using bitcoin for micro transaction now a days it was easier to send payment using bitcoin for less amount now i can't dream about that

[gamerfan]

My feedback is that unfortunately it is currently better to use "traditional" online payment systems like paypal, neteller or skrill to buy small items online.

For several reasons:

• They are widely accepted among merchants
• They are instant
• they are far cheaper to use than Bitcoin

I don't think switching to another cryptocoin will solve the problem, because soon as this altcoin will be more used, there will be the same problems that Bitcoin has now: high fees and long confirmation time.

So, currently, Bitcoin is absolutely not convenient to buy small items.

A different thing would be if you buy high price items, like 10k $ or even more. Well, in this case, Bitcoin is better than any other method.
But the fact is that many people here cannot afford to buy expensive stuff and would prefer to buy small items using bitcoin.

A solution is needed!

[OliynyK]

How will the high transaction cost impact Bitcoin usage and price in the long run?  I would rather to see the future price increase is due to demand in the coin circulation than due to demand from speculation. 

The high price of bitcoin as well as the transaction charges have an impact on the micro transactions which was possible a year back and now no one will be using bitcoin to send micro transaction as it is not at all profitable and as a normal user with the price so high ,no one would dare to invest money in it but expect big funds from investors and millionaires.