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Author Topic: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.  (Read 6219 times)
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DarkStar_
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March 01, 2018, 02:35:40 PM
 #61

Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Now that I'm thinking about it, there are so many more drawbacks of running a large store that accepts Bitcoin... You've got my brain working in overtime now, and all these thoughts keep popping into my head lol. Automation, being one of them. You'd have to hire developers to make an automated payment and fulfillment system, such as the ones that are used by existing fiat payment processors. This comes with a high-cost, as you'd have to have a custom build, or use existing companies like BitPay or Blockonomics. Custom builds will cost thousands of dollars to develop, and you have to put a lot of trust in the dev not to backdoor your code. Using bitcoin payment processors, in turn, means that there are, in fact, fees for your bitcoin payment transactions.

All of this talk can't be for no good reason. DarkStar_, do you run an online retailer that accepts Bitcoin, or are you thinking of starting one? I'm quite interested lol

No, this is purely a hypothetical with the aims of people doing more research, and maybe figuring out why their favorite retailer doesn't accept BTC, and of course learning.

Edit: I've given some posts related to this question a few merits, will still offer more if you mention something not already mentioned

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March 02, 2018, 05:13:14 AM
 #62

Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Answer:

Long story short. This is to prevent the action of double spending. The probability of having a double spending with 1 confirmation is much higher than 6, thus making the transaction with a normal or lesser fee will be overwritten and making it invalid with the same transaction but with a much higher fee (usually higher transaction fee goes first).


Let say i made 2 competing transaction 1 with lower fee and 1 with a higher fee. Im sending 1 transaction to some random person with a lower fee and the other is mine with a much higher fee.

If there is only 1 confirmation mine would get through first in the network rather than the other transaction (because i have much higher fee than the other transaction).
After i get to spend the inputs on the transaction i receive thus making the other transaction invalid (making it double spend).

With 6 confirmation any miner or client can see that there is a double spend making both transaction invalid.


This is my understanding why 6 confirmation is needed or usually considered to be a secure transaction.
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March 02, 2018, 08:22:12 AM
 #63

....
No, this is purely a hypothetical with the aims of people doing more research, and maybe figuring out why their favorite retailer doesn't accept BTC, and of course learning.

Edit: I've given some posts related to this question a few merits, will still offer more if you mention something not already mentioned

My government decide to forbid bitcoin as transaction because bitcoin still consider as criminal money.
Our public enemy are the corruptor and my government afraid that they begin to use bitcoin to cover their transaction.

For another reason, bitcoin is the currency based on dollar and my currency are weak against dollar.
Let say if BTC1 = $ 50.000 , our currency become nothing and it's cause inflation ! And when it's happen , everything will be expensive !

Different country have their different excuse so that's mine !

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March 02, 2018, 01:46:17 PM
 #64

A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Quote
Assume I have 10% of the network hashrate, then:

If you require 1 confirm, I can doublespend once every 4.9 blocks on average.

If you require 2 confirms, then I can doublespend once every 19.6 blocks on average.

If you require 6 confirms, then I can doublespend once every 4118 blocks on average.

Source: original bitcoin whitepaper by Satoshi Nakamoto, page 8.

Why 6 and not 7? Because 1 hour (average time to confirm) is a round number.
Quote
It's worth noting that the attacker also loses (n - 1) confirms * block reward every time his attack fails (by not immediately broadcasting his blocks). So that 2 confirm attack would cost the attacker 465btc per successful execution so it better be a big double spend.

For more details.

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March 02, 2018, 02:23:38 PM
 #65

Please evaluate my answer too.. i would love have any feedback...


Quote
Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.
Code:
Benefits:
1. Since your all transaction are online, Bitcoin is perfect. No worries for online charge back claims after items are delivered.
2. No need to worry about stolen cards issues
3. You won't be paying any fee to Payment Gateways which are up top 2.5% + per transaction extra fees. Bitcoin fees are very low.
4. Every payment gateway need some kind of technical knowledge to successfully implement and manage it, using bitcoin this will be hassle free.
5. Your potential customers will increase dramatically, not every body having a credit card or bank account for your online purchases but everyone can
have a bitcoin wallet irrespective of age or location.
6. Your audit is on your finger tips. You don't need to hire a audit firm and pay to conduct an audit on your transaction and go through 100s of banks
statements  to just produce a single audit report. Your audit reported is secured online get a internet access print all your history.
Drawbacks:
1. Volatility of Bitcoin, some day you will need a fiat money for your own payments and this BTC to Fiat conversion can hurt you from little to worse.
2. As of today not much options to withdraw your BTC money that fast, your options are limited in terms of exchanges offering withdraws or BTC ATMs.
3. Transaction reversal is not possible, in traditional way using credit card transactions can be reversed but in BTC you won't be having such options.
4. Possibility of loosing EVERYTHING. If you loose your wallet or private key, gone! you loose every thing forever.
5. Legals: Yet Canada does not consider Bitcoin transaction illegal, but there is no guarantee that government will not ban Bitcoin/crypto currency,
so business can at risk any time.


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March 02, 2018, 02:50:33 PM
 #66

Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
_______________________________________________________________
Satoshi's paper outlines the number of confirmations necessary to be 99.9% sure (less than 1 in 1000 chance of success) that an attacker couldn't build a longer chain to reverse the transaction.
 1-if the attacker’s hashrate is 10% of the total network hashrate (0.1 on
the horizontal axis), 2 confirmations are required to keep the success rate below 10%, 4
confirmations are needed to have it less than 1%, and 6 confirmations are necessary to
decrease the probability of success below 0.1.
2-There is nothing special about the default, often-cited figure of 6 confirmations. It was
chosen based on the assumption that an attacker is unlikely to amass more than 10%
of the hashrate, and that a negligible risk of less than 0.1% is acceptable. Both these
figures are arbitrary, however; 6 confirmations are overkill for casual attackers, and at
the same time powerless against more dedicated attackers with much more than 10%
hashrate.
3-If the attacker controls more hashrate than the honest network, no amount of confirmations
will reduce the success rate below 100%.
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March 02, 2018, 03:48:04 PM
 #67

Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Now that I'm thinking about it, there are so many more drawbacks of running a large store that accepts Bitcoin... You've got my brain working in overtime now, and all these thoughts keep popping into my head lol. Automation, being one of them. You'd have to hire developers to make an automated payment and fulfillment system, such as the ones that are used by existing fiat payment processors. This comes with a high-cost, as you'd have to have a custom build, or use existing companies like BitPay or Blockonomics. Custom builds will cost thousands of dollars to develop, and you have to put a lot of trust in the dev not to backdoor your code. Using bitcoin payment processors, in turn, means that there are, in fact, fees for your bitcoin payment transactions.

All of this talk can't be for no good reason. DarkStar_, do you run an online retailer that accepts Bitcoin, or are you thinking of starting one? I'm quite interested lol

No, this is purely a hypothetical with the aims of people doing more research, and maybe figuring out why their favorite retailer doesn't accept BTC, and of course learning.

Edit: I've given some posts related to this question a few merits, will still offer more if you mention something not already mentioned

Sorry to step in and i can not edit the quotes because im on mobile and it is kinda hard and take a long time.

I guess i just want to add a drawback because people already add a lot.
1. You will lose more money from paying taxes of your worker who doesnt want to be paid with bitcoin. Lets calculate it.
Lets pretend 1btc=1usd, when you make a big sell, your amount will be taxed if you exchange it to fiat, and lets say you will be taxed at 20%. So,
-Fiat workers case :
You got 1000 btc deal, and when you change it to 1000 usd it will be taxed 20% and you make 800. If you have 20 workers with 10usd fees, you will pay them 200 for total and leave you 600usd.
-BTC workers case
You got 1000 btc deal, you pay them 200btc for 20 workers, leave you 800btc, but when you change it to fiat you will be taxed 20% but it will leave you 640usd.
See my point? If you pay your worker with fiat, then you pay their taxes, but it will not matter if you have a worker who wants to be paid with btc.
Lets try if the price is 1btc=10000usd, tax 20%, and workers fee is 2000 a month, 20 workers, you got 1000btc deal
-fiat workers case
You got 10.000.000 usd when exchange it to fiat, taxed 20% you got 8.000.000 usd and minus total workers fee at 40.000 so you got 7.960.000 usd
-Btc worker case
You got 1000 btc, and paid workers fee at 4 btc (40.000usd) will leave you with 996 btc, when you change it to fiat you got 9.960.000, and you pay tax for 20%and will leave you with 7.968.000 usd
Correct me if im wrong, im open to a discussion


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March 02, 2018, 04:05:00 PM
 #68

Question: We ya'll have been on this forum for quite some time all thanks to Satoshi or whatever his real name is. Most of us even earn on this forum, some people even abuse it but we never thank anybody for it. If Satoshi ever returns to this forum or rather reveals himself IRL, what will you do to make the world a better place? How will you thank him? People say bitcoin is shit and is useless but it did reach 20,000$ and a lot of people became millionaires and billionaires because of it and yet there's no token of appreciation. So elaborate on how you're going to thank Satoshi. Even theymos has played a big part, so he deserves a hell a lot of appreciation. Bring it in.
This is not a question where you are going to learn about bitcoin, but I felt bad on people being such assholes and cunts. Learn to thank people for what they are and how they are trying to make this world a better place to live in every single day.

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March 02, 2018, 04:29:00 PM
 #69

Indeed today we all are connected on this forum is also due to the Satoshi firstly and then very obvious Theymos  as well. Let me tell you what I was couple of year back did not not matter much to people as they mostly ignored or dint meant anything me in their life. Though felt really bad but I always knew one thing that hard time passes by and need to wait for the opportunity and grab it when it comes.  Bitcoin was that opportunity when I was introduced to it by my friends and from their things have definitely become much better personally and also around me and it has definitely changed the lives of millions of people across the world and made them self depended too now. This would have not being possible unless we had Satoshi to create something like this and then by Theymos to bring all under this forum. So yes my life changed for better and for my family and credit goes to founder of Bitcoin.

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March 02, 2018, 05:00:28 PM
 #70

Question: We ya'll have been on this forum for quite some time all thanks to Satoshi or whatever his real name is. Most of us even earn on this forum, some people even abuse it but we never thank anybody for it. If Satoshi ever returns to this forum or rather reveals himself IRL, what will you do to make the world a better place? How will you thank him? People say bitcoin is shit and is useless but it did reach 20,000$ and a lot of people became millionaires and billionaires because of it and yet there's no token of appreciation. So elaborate on how you're going to thank Satoshi. Even theymos has played a big part, so he deserves a hell a lot of appreciation. Bring it in.
This is not a question where you are going to learn about bitcoin, but I felt bad on people being such assholes and cunts. Learn to thank people for what they are and how they are trying to make this world a better place to live in every single day.

If i am a creator of something, i would be proud of myself if my creation is known and used all over the world be any people, rich or poor, old or young, men or women. For now, sending them money is not an option because they are already richer than most of us, so the option left is to give them the joy to be proud of their creation, but how? In my opinion the best way is to spread bitcoin all over the world, locally, in wherever place you are right now, it will create a potential bitcoin user as a real bitcoin user, later on will make a country adapt bitcoin and blockchain technology, in short word, spread the awareness of bitcoin. There is no better feeling than knowing you are making a useful product for humanity.


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March 03, 2018, 03:59:23 PM
Merited by athanz88 (1)
 #71

-snip-

Sorry to step in and i can not edit the quotes because im on mobile and it is kinda hard and take a long time.

I guess i just want to add a drawback because people already add a lot.
1. You will lose more money from paying taxes of your worker who doesnt want to be paid with bitcoin. Lets calculate it.
Lets pretend 1btc=1usd, when you make a big sell, your amount will be taxed if you exchange it to fiat, and lets say you will be taxed at 20%. So,
-Fiat workers case :
You got 1000 btc deal, and when you change it to 1000 usd it will be taxed 20% and you make 800. If you have 20 workers with 10usd fees, you will pay them 200 for total and leave you 600usd.
-BTC workers case
You got 1000 btc deal, you pay them 200btc for 20 workers, leave you 800btc, but when you change it to fiat you will be taxed 20% but it will leave you 640usd.
See my point? If you pay your worker with fiat, then you pay their taxes, but it will not matter if you have a worker who wants to be paid with btc.
Lets try if the price is 1btc=10000usd, tax 20%, and workers fee is 2000 a month, 20 workers, you got 1000btc deal
-fiat workers case
You got 10.000.000 usd when exchange it to fiat, taxed 20% you got 8.000.000 usd and minus total workers fee at 40.000 so you got 7.960.000 usd
-Btc worker case
You got 1000 btc, and paid workers fee at 4 btc (40.000usd) will leave you with 996 btc, when you change it to fiat you got 9.960.000, and you pay tax for 20%and will leave you with 7.968.000 usd
Correct me if im wrong, im open to a discussion

I don't see why I'd be taxed at 20% when I sell. Unless I'm very wrong, Canada taxes Bitcoin under capital gains, so I'd only be taxed 20% or whatever the amount is for the gains I made. I think how it works is that if I earned 1000 BTC when it was worth $1, and I sold it instantly, it would not be a capital gain. If I sold at $2, $1000 should be taxed at capital gains as that's the amount gained.

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March 03, 2018, 04:26:39 PM
Merited by athanz88 (1)
 #72

I don't see why I'd be taxed at 20% when I sell. Unless I'm very wrong, Canada taxes Bitcoin under capital gains, so I'd only be taxed 20% or whatever the amount is for the gains I made. I think how it works is that if I earned 1000 BTC when it was worth $1, and I sold it instantly, it would not be a capital gain. If I sold at $2, $1000 should be taxed at capital gains as that's the amount gained.

I think you would be taxed less than that actually. Capital gains only applies if you've purchased the bitcoin with CAD, or something like that; there are contingencies on capital gains that wouldn't apply to earned Bitcoin. I believe only purchased Bitcoin that you've sold for a profit. I don't know Canadian law, but in American law in many states and federally you do not need to pay Capital Gains on your Bitcoin unless you purchased it with USD or another currency that you've purchased with USD (if you exchanged your currency, for example), something like that; I'm no legal expert. It is a bit circular, but that's because there is little to no precedent and I do not know of any cases where they have pursued and won legal judgement against someone in a situation like this. It could be argued that only sales tax and the other normally applicable taxes would be in order for your business; unless your business is financial investments. I think the Small business tax rate is something closer to 10% in Canada, plus you must retain PST/QST/RST if that's relevant.  So you'd be paying about half that in taxes for any regular business besides financial investment.

Edit: When you accept USD for example, you do not pay the capital gains on whatever increase in value the USD may experience before you exchange it back to CAD; unless you are a financial investment company. At least, this is how I understand it and have seen many people operate this way.

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March 04, 2018, 12:06:51 AM
 #73

Edit: When you accept USD for example, you do not pay the capital gains on whatever increase in value the USD may experience before you exchange it back to CAD; unless you are a financial investment company. At least, this is how I understand it and have seen many people operate this way.

Without googling the answer, I believe this to be incorrect, as both USD and CAD are deemed currencies by both nations. At the most, you'll pay an exchange fee imposed by your bank or exchange service that you use, but that shouldn't be confused as a tax from either government. Bitcoin is considered a property, and if the Canadian law is anything like US law, it gets treated just like real estate. You only pay capital gains on any profits that you make from selling it. If you sell it at a loss, however, I'm not sure if you can claim that loss, like you would with a house. Although I'm a US citizen, I do not use USD to purchase Bitcoin, so I don't ever plan on having to pay taxes on it, so I guess I've never researched it into full detail like I do for everything else tax-related in my life Tongue

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March 04, 2018, 09:04:42 AM
Merited by pugman (1), BTCforJoe (1)
 #74

Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Answer

With one confirmation you are vulnerable to the 51% attack. There could also be a miner with a lot of hashing power who could get a couple blocks in a row, so three confirmations removes most of them.

With six confirmations it is essentially mathematically impossible for an attacker with less than 51% of all mining capacity to get six blocks in a row. and still surpass the longest block chain. With 51% or a lot more than 51% the attacker can get six confirmations by creating a parallel blockchain in which only transactions approved by the attacker get included in blocks.

Therefore 6 confirmations are needed to prevent the attack from attacker.

WONO (https://wono.io/)
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March 05, 2018, 05:39:52 PM
 #75


I don't see why I'd be taxed at 20% when I sell. Unless I'm very wrong, Canada taxes Bitcoin under capital gains, so I'd only be taxed 20% or whatever the amount is for the gains I made. I think how it works is that if I earned 1000 BTC when it was worth $1, and I sold it instantly, it would not be a capital gain. If I sold at $2, $1000 should be taxed at capital gains as that's the amount gained.


I think you would be taxed less than that actually. Capital gains only applies if you've purchased the bitcoin with CAD, or something like that; there are contingencies on capital gains that wouldn't apply to earned Bitcoin. I believe only purchased Bitcoin that you've sold for a profit. I don't know Canadian law, but in American law in many states and federally you do not need to pay Capital Gains on your Bitcoin unless you purchased it with USD or another currency that you've purchased with USD (if you exchanged your currency, for example), something like that; I'm no legal expert. It is a bit circular, but that's because there is little to no precedent and I do not know of any cases where they have pursued and won legal judgement against someone in a situation like this. It could be argued that only sales tax and the other normally applicable taxes would be in order for your business; unless your business is financial investments. I think the Small business tax rate is something closer to 10% in Canada, plus you must retain PST/QST/RST if that's relevant.  So you'd be paying about half that in taxes for any regular business besides financial investment.

Edit: When you accept USD for example, you do not pay the capital gains on whatever increase in value the USD may experience before you exchange it back to CAD; unless you are a financial investment company. At least, this is how I understand it and have seen many people operate this way.

So, reading it from here :

https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html#toc3
https://www.canada.ca/en/revenue-agency/news/newsroom/fact-sheets/fact-sheets-2015/what-you-should-know-about-digital-currency.html


Like bill gator said, capital gains tax only applied to the profit you make from crytocurrency you bought from your local currency (in this case CAD) and if you make a business company that accepts bitcoin then the trade that happens between you and your customer is under the law of barter in the Canada. You would be required to file the amount of the trade as your income and you are liable for taxes.

https://www.moneywehave.com/how-is-cryptocurrency-taxed-in-canada/
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it490/archived-barter-transactions.html

Sorry that i brought a lot of links, just want to give some sources so people can read it as a references. Please correct me if i am wrong because i can be wrong since i am not a native english speaker, i am not a legal expert, and not an expert in Canadian law on taxes.


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Joel_Jantsen
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March 05, 2018, 07:34:08 PM
 #76

This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. Smiley

My question : How to calculate transaction fees before sending bitcoins ?

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shahzadafzal
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March 05, 2018, 09:15:34 PM
 #77

This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. Smiley

My question : How to calculate transaction fees before sending bitcoins ?

Wow that is one tricky question.. i will give it a try:

Since we know fee are calculated per byte. So lesser bytes mean lower fee. That's how miners calculate!

I presume your question is from the consumer (sender) prospective. If we are using segwit fee be can reduced to half. Also most wallets don't tell the size of the transaction at all, so i will leave the exact calculation a side.

On average single transaction usually have 1 input and 2 outputs  which will be =>226 bytes, 

Now we must know what is average/median fee per byte in recent block to get this we have to get from somewhere like "https://bitcoinfees.earn.com/" => i got it 30 satoshis/byte (fastest and cheapest)

If I multiply it with bytes 226 x 30 = 6780 satoshis = 0.0000678 => 0.79 US Dollar (fast & min)

So can that's lowest, now from the same website, i can the max 181 satoshis/byte

If I multiply it with bytes 226 x 181 = 40906 satoshis = 0.00040906 BTC => 4.74 US Dollar  (max)

May be i went into too technical details Smiley


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March 06, 2018, 04:46:47 AM
 #78

This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. Smiley

My question : How to calculate transaction fees before sending bitcoins ?

A one liner answer may be , just use electrum wallet and you should be fine as it has both rbf and cpfp option . In case you need more info, use this website : bitcoinfees.earn.com . With electrum, you can preview size and tx fee too .

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March 07, 2018, 02:34:08 AM
Merited by BTCforJoe (1)
 #79

This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. Smiley

My question : How to calculate transaction fees before sending bitcoins ?

Wow that is one tricky question.. i will give it a try:

Since we know fee are calculated per byte. So lesser bytes mean lower fee. That's how miners calculate!

I presume your question is from the consumer (sender) prospective. If we are using segwit fee be can reduced to half. Also most wallets don't tell the size of the transaction at all, so i will leave the exact calculation a side.

On average single transaction usually have 1 input and 2 outputs  which will be =>226 bytes,  

Now we must know what is average/median fee per byte in recent block to get this we have to get from somewhere like "https://bitcoinfees.earn.com/" => i got it 30 satoshis/byte (fastest and cheapest)

If I multiply it with bytes 226 x 30 = 6780 satoshis = 0.0000678 => 0.79 US Dollar (fast & min)

So can that's lowest, now from the same website, i can the max 181 satoshis/byte

If I multiply it with bytes 226 x 181 = 40906 satoshis = 0.00040906 BTC => 4.74 US Dollar  (max)

May be i went into too technical details Smiley

You did not go technical at all. Fees are now calculated using block weight, or vBytes (virtual bytes) with the recent Segwit upgrade. P2SH-P2WPKH address (SegWit nested in P2SH address) transactions are often larger in raw bytes than normal transactions, but have a lower fee because of block weight. The 1 MB block size limit has been replaced with block weight of 4 MB. Normal transaction data counts as 4 times their actual size (100 bytes of normal data would have a weight of 400 bytes), and SegWit data is treated as their normal size. This does not cut the fee in half like you claim, and the savings increase the more complicated (more inputs and outputs) the transaction gets.

The median transaction has 1 input and 2 outputs, and it is certainly not the average. 226 bytes is only true when Compressed Legacy (legacy, meaning addresses that begin with "1") sends to a Legacy address. If the input is Segwit or not compressed, it has a different size, being approximately 258 bytes and 168 vBytes (249 real) respectively. An output that is bech32 saves an additional 3 bytes, and for reasons I'm unaware of, it appears that sending to P2SH-P2WPKH has the same 3 byte savings.

Please stop recommending bitcoinfees.earn.com, it overestimates fees quite significantly. It was recommending 100 satoshis/byte a few days ago when 5 sat/byte were getting in the same block. Currently it suggests 20 sat/byte, while Coinb.in suggests 4 sat/byte, and if you look at the mempool, only 0.28 MB of transactions are paying a fee of 5 sat/byte or higher. Paying 20 sat/byte would just be plain stupid right now, and you would have literally no reason to do so. The best way in my opinion is to check out Jochen's mempool stats in combination with Coinb.in to determine the optimal fee to use. Based on the current stats, I'd have to agree that 4 sat/byte is the cheapest, and will get you confirmed in the next block.

Most wallets will either let you pick a satoshi/byte fee, or a fixed amount, and tell you the size of the transaction. This lets you get the correct size, and in turn, the correct fee. I'd argue that most transactions are not 226 bytes any more, with the introduction of SegWit, and from getting many (smaller) inputs. This is more true the higher your transaction value is.

For an actual technical post, I would have expected vBytes to be at the very least mentioned, maybe block weight, and definitely more in depth info on transaction sizes.

This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. Smiley

My question : How to calculate transaction fees before sending bitcoins ?

A one liner answer may be , just use electrum wallet and you should be fine as it has both rbf and cpfp option . In case you need more info, use this website : bitcoinfees.earn.com . With electrum, you can preview size and tx fee too .

Electrum was asking people to overpay just like BitcoinFees.earn.com a few weeks ago. It currently suggests 18 sat/byte for next block on version 3.0.6, which is at least 2 times more than you need. RBF helps if you pay a low fee, but does not prevent you from overpaying.

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March 07, 2018, 05:29:22 AM
 #80

For an actual technical post, I would have expected vBytes to be at the very least mentioned, maybe block weight, and definitely more in depth info on transaction sizes.

wow well now this is technical. Yeah you are right and actually i was about to mention the block-weight but since i considered answering from a normal business user who want to estimate an average fee before sending. Otherwise you answered perfectly! I did not know many things you highlighted. Thank you.

Regarding bitcoinfees.earn.com vs coinb.in i guess it's showing the lowest fee to get it into the next few blocks where bitcoinfees.earn.com is estimating the fastest.  Also i guess difference of calculating based on last 24h vs last recent block transaction giving different results.
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