A lot of people feel the average Bitcoin fee is far too high for the regular user. There is a certain truth to this statement, although it also depends on which service is being used. A new screenshot shows how a BitPay transaction charged a fee of 16% of the transaction amount. This goes to show something will need to change sooner or later. With the SegWit scaling solution, such fees should be less of an issue moving forward.
BitPay Transaction Still Invokes High Fees
A recent BitPay transaction illustrates this problem perfectly. The user tried to send $18 worth of Bitcoin over the network. However, he was charged an additional 16% in fees. That is a very large amount, although this may have something to do with the service itself. A 16% fee results in paying over $1 for this particular Bitcoin payment. Not the largest amount ever recorded, but it is still quite significant. Bitcoin is designed to be a cheaper solution, but that is far from the case these days.
Moreover, one has to question how these fees look to the outside world. Using cryptocurrencies for traditional payments makes no sense whatsoever right now. SegWit activation on the Bitcoin network will effectively reduce transaction fees over time. For now, it doesn’t appear to have a big impact just yet. The service providers have to adapt these changes as well. BitPay seemingly prefers to support SegWit2x rather than the traditional SegWit implementation. It is unclear if this will have any impact on fees moving forward.
Yeah well for that 16% transaction it all depends on how much he/she was sending in the first place. If you are sending a tiny amount (i.e. under $10) than yes, you are going to pay very large fees for the time being (until there is a solution).
