Transaction Fees

[antonimasso]

Hello,

Since Bitcoin's value is growing day by day, should the "recommended" 0.0005 BTC transaction fee be reduced?
Is there a way to calculate a fair transaction fee based on the current value of a Bitcoin?

Thanks

[1714891608]

1714891608

[1714891608]

1714891608

[Mike Hearn]

It has been reduced to 0.0001 already. The direction we're going in is dynamic fee estimation, Gavin has been working on this already for some time:

https://bitcoinfoundation.org/blog/?p=290

[antonimasso]

Thanks for the link Mike. Is there a site where developers can read the current transaction fee? I'm not using bitcoind to sign and send transactions to the blockchain, so I need to add the transaction fee programatically.

[deepceleron]

You should really understand the algorithm that calculates when fees are required and what they are in the Bitcoin source code before attempting to roll your own transactions, otherwise you will likely duplicate blockchain.info wallet fail where they send transactions without adequate fee or non-standard transactions that will never confirm.

https://en.bitcoin.it/wiki/Transaction_fee

A safe minimum is 0.0001 BTC per 1000 bytes (rounding up transaction size) for any transaction, if you want timely processing. If this BTC amount were to be adjusted, you would find it on line 50 of https://github.com/bitcoin/bitcoin/blob/master/src/main.cpp

One caveat is that this calculation must be correct for the final transaction that is broadcast. Adding a fee can change the payment inputs that are used and the size of the transaction.