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Author Topic: Fees in the future in correlation to BTC Price?  (Read 81 times)
Alvaroszi
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August 18, 2018, 11:44:33 PM
Merited by OmegaStarScream (3)
 #1

Hi everybody! Grin Grin Grin

Today I signed up in the forum, and as my first question I'd like to ask something that's been bugging me for a certain amount of time.

First of all, I'd like to clarify, I bought my first BTC quantity around August last year at a price of ~$3000, but it wasn't until the massive bull run was over that I began to read more about how Bitcoin works; because of this I'm not very knowledgeable about cryptocurrencies but as a college student CompE I'm more than willing to spend massive amounts of time learning about cryptocurrencies. So please, if any of the statements/assumptions that I make are wrong please correct me.

Now, I constantly hear stuff like "Bitcoin will reach $100K" or "Bitcoin will reach $1Million", and I'm not going to be the one to say that it is impossible, but I am certainly skeptic about it being able to reach let's say $1Million until somebody clears this issue for me.

Now, here we have the first Bitcoin transaction for a certain good (Lazlo's Bitcoin pizzas) https://www.blockchain.com/btc/tx/a1075db55d416d3ca199f55b6084e2115b9345e16c5cf302fc80e9d5fbf5d48d .The satoshi/B fee here is 4,191.363.

Now, here we have a transaction that a friend of mine made a couple of days ago.
https://www.blockchain.com/btc/tx/f847d8b7014906a355eb4fe9996a01746341c65ebe885382a437a2771b4f0e04 .The satoshi/B fee here is 7.618.

In a hypothetical future in which Bitcoin is $1million, if I want to send $5 to a friend in Bitcoin, I would be sending 500 satoshi worth of BTC to my friend, but I would be paying some miner fees, which being optimistic, the smallest on-chain value I can have I guess is 1 satoshi which would be worth $0.01.

So now we would be having to use layer 2 solutions like Lightning which allow you to have sub-satoshi fees, but opening channels also costs BTC which on-chain would be at least 1 cent.

So my questions are:
1. Can a fee have a satoshi/B value below 1?
2. Can a fee have a satoshi/B value equal to 0?
3. What is the smallest size (if there is any) in bytes that a Bitcoin transaction can be?
4. Since block rewards decrease over time, is it possible to sustain a system in which miners and low on-chain fees (by low I mean less than $0.01) can coexist with a Bitcoin valued at $1 million?

If you took time to read all of this, thank you. I hope everyone has a great summer (the little of it that is left) and thank you in anticipation for your answers!
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October 03, 2018, 02:51:52 PM
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I think yes, fees in the future are connected to the bitcoin price because it's talk about money/ coins. If there's no price we don't need to fees, if there's no fees the price is invisible for them.
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October 03, 2018, 03:00:28 PM
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There is no reason why 1 Satoshi cannot be sub-divided into smaller units, if the need exists in the future. Remember we are

dealing with programmable money here, so if the majority wants changes to be done, then anything is possible. So, I hope

that answers one or two of your questions.  Huh The Lightning Network is more meant to be for micro payments and the only

fees applicable here, would be to open a channel and to settle it when you are done.  Wink

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October 03, 2018, 03:06:15 PM
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When fees is to quantified in correlation to the the bitcoin price, that'd be good. Because actually then the payment of fees would be justified. Otherwise the fees is apparently way too high. But still the transactions are going on at the same pace. But with the advent of advanced and far better lightning network, it is expected that the transaction fees would be reduced. And it being proportional to the amount of transaction would also be ok!
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November 23, 2018, 10:59:27 PM
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Fees are connected with the price of bitcoin, I believe the price of bitcoin affects how transactions are made on the blockchain network and the reality is seen in how the various exchanges and bitcoin wallet operators revise their transaction fees.
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November 24, 2018, 02:55:49 AM
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Quote
1. Can a fee have a satoshi/B value below 1?
2. Can a fee have a satoshi/B value equal to 0?
i believe this confusion is another one of the common confusions that is caused by  looking at top levels of bitcoin instead "under the hood". like satoshi being the real unit and being UInt64 versus bitcoin being the top level unit and being a Decimal.

under the hood, there is no such thing as "satoshi/byte". the transaction only has satoshis that is the value you are transferring. this value can be anything from 0 up to the maximum value you are spending which depends on the previous output. so the resulting satoshi/byte which is defined on top level by the wallets, can be anything like 0 to 0.0001, 0.001, 0.1, 1, 2, 10, 1000, ....

Quote
3. What is the smallest size (if there is any) in bytes that a Bitcoin transaction can be?
145 bytes if i am not mistaken.

Quote
4. Since block rewards decrease over time, is it possible to sustain a system in which miners and low on-chain fees (by low I mean less than $0.01) can coexist with a Bitcoin valued at $1 million?
yes, with price and the cumulative fees. remember blocks don't contain 1 tx. they contain many and sum of all the fees can be a decent amount in that future.

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