Transaction fees are a tax on BTC

[thirdprize]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

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[Kasliono]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

I agree with you, so when we are couldn't want to pay the fees just because they go up. I think that it is the best time to see anothet coin with a low cost of txn fees, such as Doge Coin.

[charlzyeby]

Transaction fees may be a form of tax but it is worth paying it. miners can't validate our transactions for nothing. while it may be considered a tax, it is also someone else's job. the whole of the bitcoin and cryptocurrency space has to have different niche for balance and stability purposes.

[Rozita]

Yes, No one likes to pay it. But there is a big difference. Miners deserve that fee. They confirm transactions and we should pay them.  But governments want taxes for nothing. They use their power.

[lotto-fan]

But there is a big difference. Miners deserve that fee. But governments wants taxes for nothing.

Yes I agree, tax and fee are two complete different things. Fee you pay when you transact, tax you pay only when you have a gain.

[aoluain]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

i wouldnt agree, fees are not like taxes, and fees are not a tax on transactions.

We need computing power to complete our transactions, and those transactions
are grouped into a BLOCK. The miners provide a service to process those blocks
and without them its not going to happen.

Now, this thread could open a debate on "mining" and the seemingly centralised
form it has taken and the actual costs per transaction.

But in the end, there has to be miners and they aint going to process our
transactions for free.

[supermine]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

Nothing in this world is available for free.
We may call the transaction fee as service charge because the miners are the one who is performing the transactions for us.But actually the fee are too cheap now since there is no traffic in the blockchain network.
If you don't want the transaction fee to go up switch to the segwit address since the transaction will takes place much faster in the legacy.If everyine adopts to the segwit then the fee will never climb up like what happened at the end of 2017.

[Hui8]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

I am not sure how truthful this one is. But I dont like the idea of thinking that those fees are really taxes for the BTC. I mean just take the real life example when, we transact through our banks we dont pay tax on each transaction but it summed up at the financial year end when we provide the details for every outgoing and incoming transaction processed through our banks.

The fees is more or less used for the miners efforts, for doing the job and its more or less salary of the miner. Tax is taken for those bodies who ideally will control the miners as well as peers. So its just fees, a way of rewarding the miner.  

[thirdprize]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

I am not sure how truthful this one is. But I dont like the idea of thinking that those fees are really taxes for the BTC. I mean just take the real life example when, we transact through our banks we dont pay tax on each transaction but it summed up at the financial year end when we provide the details for every outgoing and incoming transaction processed through our banks.

The fees is more or less used for the miners efforts, for doing the job and its more or less salary of the miner. Tax is taken for those bodies who ideally will control the miners as well as peers. So its just fees, a way of rewarding the miner.  

Cash is free.  My bank is free.  Heck, my bank even pays me interest.  If it was a tax we could complain to some one.  Over Christmas the "tax" went up and the service went down.  You wouldn't stand for that anywhere else.

[tot-o]

That's how a community works, or organization, even a single application needed to have a financial support to maintain their service and pay staff for making report, electricity bill and many more, there is no service like totally and completely free and their service is awesome.
Expect service fee for everything...

[Aura]

You can't compare miner fees to tax, it's a whole different thing. Tax is going to government to provide infrastructure and much more for it's citizens, miners don't do one of these things with the money they get from transactions. Also assuming that everyone complains and don't want to pay tax is subjective, same thing applies for miner fees. I am personally not against paying fees to miners, otherwise the whole system wouldn't work. No miners means no proof-of-work, means no blockchain.

[voron84-05]

I think so, the commission is not like tax,
commission for transactions BTC is more like a commission when calculating a debit card,

taxes of the state is another opera!

[jseverson]

Cash is free.  My bank is free.  Heck, my bank even pays me interest.  If it was a tax we could complain to some one.  Over Christmas the "tax" went up and the service went down.  You wouldn't stand for that anywhere else.

I'm pretty sure some of the tax money you pay go into printing of more cash. Banks are only free because they make money off you, and they do charge for certain transactions.

I don't have beef if you see miner fees as taxes, but unlike actual taxes, the miners don't set the fees; you can pay however much you want (granted, very low fees are going to get your transaction stuck in limbo). That's a very significant, fundamental difference.

The fees spiked around Christmas time because users started entering into bidding wars for transaction confirmations with each other, driving the fees up. It's more of the network's fault rather than the miners'. I'd also like to note that if you actually paid the increased fee, you'd get the usual service, so it technically didn't go down.

[tokexchain]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

Miners and network confirmation fees, what would happen if there were no miners or fee.. there would be be Bitcoin netowrk.. The blocks would literally stop, and you think the mempool is bad now? 

[Mind Control]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

Correlating Bitcoin's transaction fee to tax is flawed. Paying tax is fixed based from your revenues and some other basis or factors. You can do tax evasion (but brace yourself about the consequence. While transaction fees are not fixed, you could increase or decrease the fee if you wanted to. You can even not pay tx fee but better wait days or weeks before being confirmed (if it will be )

Therefore tx fee is a just a fee. You used their service (mining), pay some fee. You want your tx to be confirmed quickly, pay more fee. Willing to wait, pay less fee. etc. etc.

[faatipoke]

Yes transaction fees are bad and nobody likes it. There are some altcoins that does not have transaction fees, even some of them does not use blockchain. Maybe you can try these such as Neo, Nano, IOTA, etc. Bitcoin will always stay as king, gold of the cryptocurrencies, however we may need another coin for using in transactions.

[thirdprize]

Cash is free.  My bank is free.  Heck, my bank even pays me interest.  If it was a tax we could complain to some one.  Over Christmas the "tax" went up and the service went down.  You wouldn't stand for that anywhere else.

I'm pretty sure some of the tax money you pay go into printing of more cash. Banks are only free because they make money off you, and they do charge for certain transactions.

I don't have beef if you see miner fees as taxes, but unlike actual taxes, the miners don't set the fees; you can pay however much you want (granted, very low fees are going to get your transaction stuck in limbo). That's a very significant, fundamental difference.

The fees spiked around Christmas time because users started entering into bidding wars for transaction confirmations with each other, driving the fees up. It's more of the network's fault rather than the miners'. I'd also like to note that if you actually paid the increased fee, you'd get the usual service, so it technically didn't go down.

Miners do set the rates as they prefer to process the ones with high fees rather than the ones with low fees.  As with taxes, the less you pay, the worse the service you get.  

[clrpod]

The similarity between taxes and transaction fee is that they are both necessary evils. Things don't just happen for nothing. If you want to transfer your bitcoin you have to pay a transaction fee for that to happen, no one will do it out of the kindness of their own heart. Similarly if you want your garbage collected you have to pay someone to do it, this money has to come from somewhere and that's why you have taxes.

[Taras]

Taxes, like death, are inevitable.  When they go up, people complain.  Txn fees are a form of tax on BTC that goes to the miners.  No-one wants to pay them but they have to.

Miners and network confirmation fees, what would happen if there were no miners or fee.. there would be be Bitcoin netowrk.. The blocks would literally stop, and you think the mempool is bad now? 

I can't tell if you're saying that the mempool being too big or too small will drive miners out; if you're saying the fees being too small are an issue, that's not likely - why would miners stop mining because of low fees? They still get no less than 12.5 BTC ($125,000) per block. If fees were too high, then miners still wouldn't want to stop, because now they're making even more money than before.

Yes transaction fees are bad and nobody likes it. There are some altcoins that does not have transaction fees, even some of them does not use blockchain. Maybe you can try these such as Neo, Nano, IOTA, etc. Bitcoin will always stay as king, gold of the cryptocurrencies, however we may need another coin for using in transactions.

If you have to go to a different coin to make transactions, then bitcoin will not always stay as king. But even when the mempool is oversaturated, you won't have to go to a different coin once the lightning network is widespread.

[Desperaboss]

It is a fee but not a tax. It would be a tax if governmental institution provide mining power. Then the fees could be seen as taxes on monetary transactions.