From past few weeks we are working on a possible solution which can minimize bitcoin transaction fees. No we are not talking about bitcoin fork or a scaling solution. We are talking about an alternate solution which allows users to save their bitcoins instead of paying a chunk of it as miner fees every time they want to send some money. All the transaction fees which is collected by miners is dumped in the market daily to cover their mining costs which eventually decreases the bitcoin value by creating more supply than market demand.
Let's read something more about mining fees:
Transaction fees are voluntary on the part of the person making the bitcoin transaction, as the person attempting to make a transaction can include any fee or none at all in the transaction. On the other hand, nobody mining new bitcoins necessarily needs to accept the transactions and include them in the new block being created. The transaction fee is therefore an incentive on the part of the bitcoin transactor to make sure that a particular transaction will get included into a block.
It is envisioned that over time the cumulative effect of collecting transaction fees will allow somebody creating new blocks to "earn" more bitcoins than will be mined from new bitcoins created by the new block itself. This is also an incentive to keep trying to create new blocks as the creation of new bitcoins from the mining activity goes towards zero in the future.
Because of deep technical reasons, bitcoin block space is a scarce commodity, getting a transaction mined can be seen as purchasing a portion of it. The price of block space is set by supply and demand, although in the real world the supply of space for transactions is extremely noisy, because more becomes available (and has to be immediately consumed or it’s lost forever) every time a block is mined, and block mined is an intentionally random process, that randomness being essential for bitcoin's operation. Demand is random and cyclical. Random because each transaction is generated individually so the total amount is noisy (although that averages out to be somewhat smooth at scale) and has both daily and weekly cycles, with more transactions done during the day than at night. Demand can also be affected by speculative movements in the exchange rate.[3]
Therefore the market for block space asks users to make a tradeoff between confirmation time and cost. Users with high time requirements may pay a higher than average miner fee to be confirmed quickly, while more users under less time pressure can save money by being prepared to wait longer.
https://en.bitcoin.it/wiki/Transaction_feesThat's it. So a bitcoin transaction fees servers no other purpose than paying extra money to get a transaction confirmed. It's like bribing some bank official to pass a loan quickly or get a cheque processed fast. Okay but the bigger question is
do we really need to pay bitcoins as transaction fees?
Please think about it and we would like to hear your opinions.
