Bitcoin Transaction Fee Solution

[edrich]

According to bitinfocharts.com the average transaction cost to have your transaction included in the next block was 16USD.
With Segwit 2x cancelled, what is going to be the solution to this problem?
Perhaps other crypto taking over?

[DannyHamilton]

The solution is to pay a higher transaction fee or wait a very long time for confirmation.

If you don't like those options, then don't use bitcoin.

This is how the free market works.

As the fees get more expensive, less people will use bitcoin.  Eventually the fees are high enough that the number of transactions willing to pay that fee are the same as the amount of space available in a block.  Then there is no longer a backlog and the fees stabilize at that price.

It is quite possible that this will eventually result in bitcoin only being used for VERY high value transactions.  If you need to move $10,000,000 from one country to another in less than an hour, then you'll be happy to pay a $100 transaction fee.  Meanwhile those that are moving less than $1000 will not be willing to pay a $100 transaction fee.  Therefore, Bitcoin will be ONLY for the very wealthy to move very large amounts of money.  Perhaps ONLY banks and multi-national corporations will be using Bitcoin in 10 or 15 years.

[MJunioR]

Wait or pay, or avoid doing transactions with BTC of for now because the fee is only going up for now.

[prlelbnwh]

The solution is to pay a higher transaction fee or wait a very long time for confirmation.

If you don't like those options, then don't use bitcoin.

This is how the free market works.

As the fees get more expensive, less people will use bitcoin.  Eventually the fees are high enough that the number of transactions willing to pay that fee are the same as the amount of space available in a block.  Then there is no longer a backlog and the fees stabilize at that price.

It is quite possible that this will eventually result in bitcoin only being used for VERY high value transactions.  If you need to move $10,000,000 from one country to another in less than an hour, then you'll be happy to pay a $100 transaction fee.  Meanwhile those that are moving less than $1000 will not be willing to pay a $100 transaction fee.  Therefore, Bitcoin will be ONLY for the very wealthy to move very large amounts of money.  Perhaps ONLY banks and multi-national corporations will be using Bitcoin in 10 or 15 years.

Have to admit that the current currency transfer cost is higher and higher, if for small transfers, almost all quick can't afford the transfer fees, especially if set low transfer fees, it could wait for a few days to turn out.The S2X should be a very ideal transfer solution, unfortunately.

[pintudepan]

Money transfer solutions are much cheaper than traditional service charges

[alphacoco]

The solution is to pay a higher transaction fee or wait a very long time for confirmation.

If you don't like those options, then don't use bitcoin.

This is how the free market works.

As the fees get more expensive, less people will use bitcoin.  Eventually the fees are high enough that the number of transactions willing to pay that fee are the same as the amount of space available in a block.  Then there is no longer a backlog and the fees stabilize at that price.

It is quite possible that this will eventually result in bitcoin only being used for VERY high value transactions.  If you need to move $10,000,000 from one country to another in less than an hour, then you'll be happy to pay a $100 transaction fee.  Meanwhile those that are moving less than $1000 will not be willing to pay a $100 transaction fee.  Therefore, Bitcoin will be ONLY for the very wealthy to move very large amounts of money.  Perhaps ONLY banks and multi-national corporations will be using Bitcoin in 10 or 15 years.

Everything you say sounds so true but such a shame.

[Boseda]

The solution is to pay a higher transaction fee or wait a very long time for confirmation.

If you don't like those options, then don't use bitcoin.

This is how the free market works.

As the fees get more expensive, less people will use bitcoin.  Eventually the fees are high enough that the number of transactions willing to pay that fee are the same as the amount of space available in a block.  Then there is no longer a backlog and the fees stabilize at that price.

It is quite possible that this will eventually result in bitcoin only being used for VERY high value transactions.  If you need to move $10,000,000 from one country to another in less than an hour, then you'll be happy to pay a $100 transaction fee.  Meanwhile those that are moving less than $1000 will not be willing to pay a $100 transaction fee.  Therefore, Bitcoin will be ONLY for the very wealthy to move very large amounts of money.  Perhaps ONLY banks and multi-national corporations will be using Bitcoin in 10 or 15 years.

This is a very likely scenario in my opinion too. But that's quite sad, because many of us really want to use Bitcoin for daily transactions.

[bitfools]

The solution is to pay a higher transaction fee or wait a very long time for confirmation.

If you don't like those options, then don't use bitcoin.

This is how the free market works.

As the fees get more expensive, less people will use bitcoin.  Eventually the fees are high enough that the number of transactions willing to pay that fee are the same as the amount of space available in a block.  Then there is no longer a backlog and the fees stabilize at that price.

It is quite possible that this will eventually result in bitcoin only being used for VERY high value transactions.  If you need to move $10,000,000 from one country to another in less than an hour, then you'll be happy to pay a $100 transaction fee.  Meanwhile those that are moving less than $1000 will not be willing to pay a $100 transaction fee.  Therefore, Bitcoin will be ONLY for the very wealthy to move very large amounts of money.  Perhaps ONLY banks and multi-national corporations will be using Bitcoin in 10 or 15 years.

BINGO, this is what China is already saying "Bitcoin is currency for the Gods"

It's not for little people, it will be the crypto SDR, and for little people u can pay for the public toilet with your favorite shit-coin.

Think about why Goldman Sachs 'Futures' takes over BITCOIN in next 24 hours? Because its too important for ZOG to not take control.


...

Futures? They're nothing but the reflection of an actual article. A magnified, distorted reflection. but nothing more than that.

And trust Goldman-Sachs? Goldman-fucking- Sachs? Prime architect of the 08 Crash?

This is just another kind of IQ test. If you can't learn what banks like G-S did with PMs and apply that to BTC,, you have a -70 IQ.

[aso118]

The solution is to pay a higher transaction fee or wait a very long time for confirmation.

If you don't like those options, then don't use bitcoin.

This is how the free market works.

As the fees get more expensive, less people will use bitcoin.  Eventually the fees are high enough that the number of transactions willing to pay that fee are the same as the amount of space available in a block.  Then there is no longer a backlog and the fees stabilize at that price.

It is quite possible that this will eventually result in bitcoin only being used for VERY high value transactions.  If you need to move $10,000,000 from one country to another in less than an hour, then you'll be happy to pay a $100 transaction fee.  Meanwhile those that are moving less than $1000 will not be willing to pay a $100 transaction fee.  Therefore, Bitcoin will be ONLY for the very wealthy to move very large amounts of money.  Perhaps ONLY banks and multi-national corporations will be using Bitcoin in 10 or 15 years.

This is a very likely scenario in my opinion too. But that's quite sad, because many of us really want to use Bitcoin for daily transactions.

If this is a way the market plays out, Bitcoin's price will crash for sure. People believe in Bitcoin's potential to be a future currency and will not really invest in it if they think it is an alternative to SWIFT. It would be a sad story.

[Lancusters]

This situation with the price of the transaction can not last long. It needs to be addressed. I liked the idea segwit2x but the miners decided otherwise and began to blackmail the bitcoin community. Now there is news that came up with a new system "lightning" which will speed up the time of confirmation of the transaction. Perhaps in the near future the problem will be solved and with the price of small transactions.

[TheQuin]

In the long term, the solution will be that more transaction will occur off-chain. You have probably heard about Lightning Network which will be coming along soon.

Here are a couple of articles about it.

An introduction to what it is all about.
https://cointelegraph.com/explained/lightning-network-explained

Some recent news on how it is progressing.
https://www.coindesk.com/lightning-bitcoin-scaling-tech-really-know/

[Dudeperfect]

Well, the transaction fee is still an issue for the smooth functioning of Bitcoin and growth of it but I am more concerned about the community and forks taking place just for such issues. Personally, I believe that we are going to find a solution to high transaction fees soon and we will be able to conduct microtransactions in less fees. Ever increasing block size is not a permanent solution for it but lightning fast network can help us to reduce the fees.

[Carmen01]

We can direct the bitcoin in some wallet here then cash out like mine so i don't have any fee.I only experience some fees if i deposit or withdraw in some exchanger but for me that's low because 0.009 btc is to 30000 sat fees only and i think a fee is not a problem at all in exchanger.There's a lot of wallet here so find a good for you but most of the wallet here have fees and for me that's not a problem here like in blockchain wallet it so safe to do a transaction and it's fast like a second.I use coinpot wallet but it because we have wallet here in our country that don't have fee if we do transact in coinpot

[xdrpx]

There are few things I seem to have difficulty coping up with, but I don't want to stop using Bitcoin because of them. I still find the need to use Bitcoin cause of it being decentralized and don't have to deal with going to the ATMs and waiting in long queues cause of some central bank limits on withdrawals.

I feel the fee issue will be resolved soon (may it be with the implementation of the lightning network, sidechains, use of segwit addresses and Schnorr signatures) but we've got to wait patiently. We need to help the developers by involving ourselves to speed up development of these proposals and implementations. The only possible solution right now is to make use of transaction accelerators for free (if the weight of your transaction is small enough for it) or probably use Child-pays-for-parent or Replace-by-fee to bump up your tx fee by a bit. I know it's costly, but it's the only go in such situations. Honestly speaking I too fear the current fee situation and I feel it's not going to be usable by 3rd world countires or developing nations cause they're unable to afford such high fees.

[ShowOff]

According to bitinfocharts.com the average transaction cost to have your transaction included in the next block was 16USD.
With Segwit 2x cancelled, what is going to be the solution to this problem?
Perhaps other crypto taking over?

it is all about the price, fees look like expensive because bitcoin price up too, and don't forget if your coins value is up too, why make this a seriously problem when you only pay a little fee from your money

[hugeblack]

No, it’s not a problem to find a solution.

if you want to send 1000 it’s about 0.1 bitcoin and will pay about 20$ for that 0.002.
in future maybe you want to send 10000$ it’s about 0.1 bitcoin and also will send about 200$(which is very good and fast).

also, you get free money from just simple holding.

problem is spam/huge unconfirmed transaction which will solve it by simple wait 2-4 days

 

[xBitHodler]

Well, the SegWit1x has been already introduced and it helped with lowering the fees but it is not our fault that most of the community haven't switched to SegWit addresses. The latest version of Electrum supports SegWit but (un)fortunately, it generates new type of SegWit addresses which as far as I know, are not compatible with legacy addresses (correct me if I'm wrong). Also, many exchanges don't use SegWit addresses for deposit and withdrawals so you should blame them.

[AicecreaME]

Wait or pay, or avoid doing transactions with BTC of for now because the fee is only going up for now.

The Transaction fee right now is not fair for me also, it is like they are taking the advantage because they know that many people will transfer bitcoin because its price is skyrocketing to the moon, and it is a pretty clever move. We don't even have a choice, if we needed the money, then we have to bear with this high transaction fee for the sake of our bitcoins.

and if you have too many bitcoins, this transaction fee would be nothing for you, it is just a penny if we are going to talk about real money.

[bloodyvio]

With Segwit 2x cancelled, what is going to be the solution to this problem?
Perhaps other crypto taking over?

It could have happened for another crypto took over the market.
But I think it's very difficult to happen (but it still may happen), because bitcoin marketcap is very big and well known, is started to be accepted as legitimate payment in certain countries.

and for the solution, I think there is no solution unless the segwit2x successfully implemented.

[TheQuin]

Well, the SegWit1x has been already introduced and it helped with lowering the fees but it is not our fault that most of the community haven't switched to SegWit addresses.

It is in large part due to Core not yet being able to send Segwit transactions. Core still makes a large part of the network and most large services use it, accounting for a big proportion of the traffic.

The latest version of Electrum supports SegWit but (un)fortunately, it generates new type of SegWit addresses which as far as I know, are not compatible with legacy addresses (correct me if I'm wrong). Also, many exchanges don't use SegWit addresses for deposit and withdrawals so you should blame them.

The addresses are compatible in terms of you can send transactions to/from either. The problem is that other wallets have yet to catch up so you can only send to them from another Electrum wallet.

What has happened here is that the implementation other wallets use encapsulates Segwit and was only ever meant as a transition step. Electrum has gone straight to using native Segwit, everyone else will catch up. Core has promised it in the next major release.

[mahimonliner]

The problem is bitcoin network count fees as bitcoin value.
For example if you wants to send 1BTC it takes the fees for the bitcoin value not as the dollar value. Suppose it took 0.01btc as a fees for 1BTC transactions which is above 100$ in current bitcoin value.
So i think there is no solutions for the bitcoin fees unless the network wants to count transactions as dollar value.

[AwpDragonPoor]

There is none, people must be willing to pay a high transaction fee for them to get noticed by miners, or else their transaction will be stuck in transit. Bitcoin will only be used for very large transactions, or people will have to switch to another crypto for payments and such. Forks for bitcoin also help this, such as BCH, or the newer BCG.

[xBitHodler]

The addresses are compatible in terms of you can send transactions to/from either. The problem is that other wallets have yet to catch up so you can only send to them from another Electrum wallet.

What has happened here is that the implementation other wallets use encapsulates Segwit and was only ever meant as a transition step. Electrum has gone straight to using native Segwit, everyone else will catch up. Core has promised it in the next major release.

Thank you for your reply. I was quite sure that there was a hidden option to create a SegWit address on Bitcoin Core client using console. I have already seen transactions to SegWit native addresses but most of them are not displayed on block explorers due to "Can't decode error". In January I should receive my Trezor T which in the newest update started supporting this type of address. Not many people use them despite that they are generated also in Electrum. Do you happen to know why is that?

[TheQuin]

Thank you for your reply. I was quite sure that there was a hidden option to create a SegWit address on Bitcoin Core client using console.

Yes, you can create the old style Segwit addresses but not send a Segwit transaction. So it is only useful if you plan on storing the BTC and waiting for the next version before you can spend it (I might be wrong on that bit but that is how I understand it).
The news base32/bech32 addresses Core doesn't recognise at all so you cannot create them or send a transaction to them. You can receive from them because it's just an input.

I have already seen transactions to SegWit native addresses but most of them are not displayed on block explorers due to "Can't decode error".

Simply because the block explorers are using a Core node.

In January I should receive my Trezor T which in the newest update started supporting this type of address. Not many people use them despite that they are generated also in Electrum. Do you happen to know why is that?

Just because so many people cannot currently send to them. I'm using them but it means I need to keep two wallets. Once Trezor, Core and everyone else catches up, I imagine many more people will use them.