Miners are happy, while we suffer?

[Finestream]

I have observed recently that the transaction fee for bitcoin transfers has significantly increase, I was wondering if this would help bitcoin to grow further if people are suffering from high fees while miners are doubling their income, is this the result of the halving we have been anticipating?

https://news.bitcoin.com/bitcoin-miners-double-revenue-fees-have-spiked-over-200-in-10-days-since-the-halving/

Bitcoin (BTC) miners earned 44% more in transaction fees in the nine days since the halving than they did for the whole of April. If this continues miners will have more than doubled their income from transaction fees going forward.

Please share your thoughts.

[1715034109]

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[1715034109]

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[bitmover]

Fees are high because volatility is too high. A lot of traders are sending bitcoin to and out exchanges... this always happens.

But you can still make transactions with low fees. I made a transaction recently with 10 sat/byte that was confirmed in a few hours. You just need to be patient.

Miners are not making a lot of money due to halving. Fees are just a small part of the reward:

look this block for example
https://www.blockchain.com/btc/block/0000000000000000000e64f2f8a06ffeb03cb4a597fdcb11f43ee9bf16decbc3

Block Reward
6.25000000 BTC
Fee Reward
0.13771274 BTC

[UmerIdrees]

I have observed recently that the transaction fee for bitcoin transfers has significantly increase, I was wondering if this would help bitcoin to grow further if people are suffering from high fees while miners are doubling their income, is this the result of the halving we have been anticipating?

https://news.bitcoin.com/bitcoin-miners-double-revenue-fees-have-spiked-over-200-in-10-days-since-the-halving/

Bitcoin (BTC) miners earned 44% more in transaction fees in the nine days since the halving than they did for the whole of April. If this continues miners will have more than doubled their income from transaction fees going forward.

Please share your thoughts.

Even miners are not happy because the block reward is halved. We do have to pay extra fee if we want to confirm our transactions quickly. Sometimes due to the nature of the transactions, it is not possible to wait for 6hr or more, so you have to put a high fee in order to confirm it.

[NeuroticFish]

1. We had plenty of occasions to consolidate the small inputs for times like this.
2. The fees are not big if you are not in extreme hurry.
3. We all have to learn to do on-chain transactions only when it's necessary.


For some reasons (either block reward halving, either drought in China = electricity problems) some miners have stopped. This means that for some while (until the next difficulty recalculation) the existing miners will have a more difficult job. And since the reward is decreased, I don't think that they are so much happy.

[stadus]

I think the transaction has drop today, the high fees was just temporary but bitcoin's transaction fee is really high compared to altcoins, so if you are not comfortable with it and you like your transactions to confirm faster, you better use an altcoins.

About miners fee, i think it's kinda technical, what we see most of the time is the transaction fee we charge when we are transaction.
Like for an instance, if we choose 10 blocks in previous days, we will pay like 5 to 6 usd, but now we can only pay over a dollar.

I am not an expert on how to compute all these things, but this is just what I also notice when making a transaction, for ordinary people, we can't help but notice it and just complain to ourselves.

[avikz]

I have observed recently that the transaction fee for bitcoin transfers has significantly increase, I was wondering if this would help bitcoin to grow further if people are suffering from high fees while miners are doubling their income, is this the result of the halving we have been anticipating?

https://news.bitcoin.com/bitcoin-miners-double-revenue-fees-have-spiked-over-200-in-10-days-since-the-halving/

Bitcoin (BTC) miners earned 44% more in transaction fees in the nine days since the halving than they did for the whole of April. If this continues miners will have more than doubled their income from transaction fees going forward.

Please share your thoughts.

Neither miners are happy after the halving, nor regular users are happy with the transaction fees. However the increase in fees is caused by more number of transactions. You can easily check the number of transactions using blockchain website. Use the below link,

https://www.blockchain.com/charts/n-transactions-per-block

It is showing a steady increase since last 30 days. So if the number of transactions is high, the network becomes congested which in turn pushes both fees and confirmation time to another notch higher. Definitely not happy with it but we will have to deal with it!

[Finestream]

Thanks for sharing your opinion guys, appreciated it, I've learn a lot.

Definitely not happy with it but we will have to deal with it!

There is no choice but to deal with it, although I don't like how high the fees recently but most of my transactions are in bitcoin, so I just hope the fee will reduce and will be reasonable for ordinary users like me, paying 5 usd fee for a very small transaction is not reasonable at all, I know that we can reduce the fee but sometimes I have no choice as I want my transaction to confirm faster.

I think the transaction has drop today, the high fees was just temporary

I haven't made a transaction today, I will find out once I made a transaction. Thanks for sharing.

but bitcoin's transaction fee is really high compared to altcoins, so if you are not comfortable with it and you like your transactions to confirm faster, you better use an altcoins.

That would be my last option, but like I said, most of my business transaction online is on bitcoin.

[minairia3]

Even miners are not happy because the block reward is halved. We do have to pay extra fee if we want to confirm our transactions quickly. Sometimes due to the nature of the transactions, it is not possible to wait for 6hr or more, so you have to put a high fee in order to confirm it.

This is both at disadvantage for miners and users. I cant transact also lately due to very high fees. We can use accelerator but Im actually hoping thay we could go back to a normal hashrate that fees is not like this. If bitcoin price increases then this will surely continue unless more miners will come and help but with recent halving I doubt some will do probably many havr quit already due to the halved rewards.

[Kakmakr]

People need to understand that the protocol was developed to always balance out things. Now that the Block reward has halved again, miners are more reliant on fees and the bitcoin price has been up and down lately, so the traders are making a fortune. They buy when the price is low and they sell when the price are a little bit higher.

So these traders are generating a lot of small transactions and the higher the transaction volume, the higher the transaction fee will be to get it confirmed on the Blockchain. (This is not applicable to people using exchanges to trade, because those tx's are done within the exchange software/database and the only on-chain transactions are the ones where traders send coins to the exchange or remove it from the exchange) 

[o_e_l_e_o]

while miners are doubling their income

Miners are absolutely not doubling their income. The increase in revenue they are earning from the higher fees is a fraction of the decrease in revenue from the halving of the block reward.

so I just hope the fee will reduce and will be reasonable for ordinary users like me, paying 5 usd fee for a very small transaction is not reasonable at all, I know that we can reduce the fee but sometimes I have no choice as I want my transaction to confirm faster.

At present, a fee of 3 sats/vbyte will get you in the next block. That works out to less than 10 cents for an average transaction. If you need instant confirmations without the high fee during times when the mempool is very full, as it has been for the last week, then you should look in to use the Lightning Network.

I haven't made a transaction today, I will find out once I made a transaction. Thanks for sharing.

The best way to visualize the fees is by using this site: https://jochen-hoenicke.de/queue/#1,8h. Scroll down to the third graph "Mempool size in MB". You will see the mempool is full of transactions at 1 and 2 sats/vbyte. Anything from 3 sats/vbyte and higher is being confirmed with each block.

but with recent halving I doubt some will do probably many havr quit already due to the halved rewards.

Miners mined with less reward than this for a long time. From the beginning of bitcoin's life up until September 2017 when the price crossed $4,500 for the first time, miners were receiving less block reward in terms of USD than they are just now. Any time in the last 4 years that bitcoin was less than $4,500, miners received less block reward than they are just now. And through all of this, bitcoin worked just fine. It just needs a little time for the difficulty adjustments to happen, and all will be back to normal.

[vycl87]

I have observed recently that the transaction fee for bitcoin transfers has significantly increase, I was wondering if this would help bitcoin to grow further if people are suffering from high fees while miners are doubling their income, is this the result of the halving we have been anticipating?

https://news.bitcoin.com/bitcoin-miners-double-revenue-fees-have-spiked-over-200-in-10-days-since-the-halving/

Bitcoin (BTC) miners earned 44% more in transaction fees in the nine days since the halving than they did for the whole of April. If this continues miners will have more than doubled their income from transaction fees going forward.

Please share your thoughts.

The number of Bitcoin transactions has always been variable. Miners fee may have increased slightly since more transactions took place as a result of high volatility in the post-halving period. However, it should not be forgotten that the reward per block has decreased by 50%. The reward, which was previously 12.5BTC in each block, is now 6.25BTC.

The miners fee that miners charge in one block is too small to make up the difference. In other words, miners' reward for transaction fees only increased. But the block reward is now less. So this is not a very good thing for miners. Also, it would not be fair to say that we suffered in this process. The BTC price is fine, except for a few short-term dump.

[kryptqnick]

I have observed recently that the transaction fee for bitcoin transfers has significantly increase, I was wondering if this would help bitcoin to grow further if people are suffering from high fees while miners are doubling their income, is this the result of the halving we have been anticipating?

https://news.bitcoin.com/bitcoin-miners-double-revenue-fees-have-spiked-over-200-in-10-days-since-the-halving/

Bitcoin (BTC) miners earned 44% more in transaction fees in the nine days since the halving than they did for the whole of April. If this continues miners will have more than doubled their income from transaction fees going forward.

Please share your thoughts.

The fees are jumping, and they are indeed higher than I expected they would be. I've recently sent 0.05 BTC and paid $15! But the peak of the fees was 5 days ago, and now they are 50% lower, according to Bitinfocharts. At the same time, average transaction fees since the very end of April are higher than they've been over the previous 10 months. Maybe it's a temporary thing with more transactions than usual because halving brought attention to Bitcoin. Plus, it seems from the thread that miners aren't doubling income, so it's neither good enough for us nor for them. It is alarming to see the fees on the rise, and it brings up the question of cheap small transactions once again... Miners do need to eventually learn to live off the transaction fees, so those can be expected to increase significantly...

[serjent05]

I also think that miners aren't happy after the halving even though there is a spike on the transaction fee.  Imagine from the x amount they are mining it became x/2 after the halving and the price does not consolidate on it because it doesn't increase by 2x.

We all know that transaction fee depends on how many transactions were waiting to be confirmed, I don't think this as an added issue since this problem had been there ever since.  Whenever there are lots of pending transactions, the tx fee always increases due to the "competition" where the highest bidder will be confirmed first.

[coolcoinz]

Are you really going to use the word "suffer" to describe the necessity of paying a transaction fee?
Does it mean that you're suffering because you have to pay for a train ticket or a parking space? Let's not exaggerate please.
The fees might be high if you're looking to send a dollar or 2 in BTC, but for the rest of us who use it for larger transactions paying a dollar to pay for something worth 1k USD is completely fine and even cheaper than using PayPal for the same thing.
The world is not equal and while some people in Ghana earn less than 1 USD per hour of work, people in the EU or the US get 10 times more. What may seem like a lot to some of us is dust to others.

[shield132]

Roger Ver, Bitcoin has 40x higher value than your bitcoin cash. Even XPR has gained more trust among users than bitcoin cash.
Bitcoin.com isn't reliable source of informations, according to them miner's revenue has doubled but in reality bitmover showed you perfect example of what rewards miners get from one block vs from collected tx fees.
Right now tx fees are divided into three part:
1. Most transactions are sent with 1-12 satoshis per byte.
2. Then comes transactions with 132-150 satoshis per byte.
3. And finally seems there are some people willing to pay more than 253 satoshis per byte.

It's not an alarming news but I think everything will fade away soon and fees will return to normal but they may rise again when price goes higher.
Believe me, miners aren't happy with current situation. They want bitcoin's price to rise rather than mining fees cause it's more beneficial for them and for crypto community in overall.

[Baofeng]

And I don't think that miners are doing it intentionally, it's just the economics of bitcoin mining. When mempool are clogged then fees are going to increase, simply as that. So if you're not in a hurry then you can probably wait. And there are wallets though that simply balloon fees. So if you are using a wallet wherein you can manually set the transaction fee, then by all means take advantage of that feature.

[Sanugarid]

while miners are doubling their income

Miners are absolutely not doubling their income. The increase in revenue they are earning from the higher fees is a fraction of the decrease in revenue from the halving of the block reward.

If you guys think that they were generating more than before the 3rd halving then you might wanna check their maintaining expenses for hardware upgrades. Halving just basically cut the supply but increased the block rewarding, not too wrong for bitcoin miners, we are just looking into their generating revenue.

but with recent halving I doubt some will do probably many havr quit already due to the halved rewards.

Miners mined with less reward than this for a long time. From the beginning of bitcoin's life up until September 2017 when the price crossed $4,500 for the first time, miners were receiving less block reward in terms of USD than they are just now. Any time in the last 4 years that bitcoin was less than $4,500, miners received less block reward than they are just now. And through all of this, bitcoin worked just fine. It just needs a little time for the difficulty adjustments to happen, and all will be back to normal.

What drives the transaction fees so high is the volatility of the market, the price keeps on spiking and transactions are being made everywhere at expensive rates. I think the adjustments you are saying will be here after a long time, since there has been injecting huge amounts of fiat and the market and futures trading is enormous these days. I love the volatility of the market right now coz I'm a trader, what really bugs me is the transaction fee, but then it's alright.

[Tipstar]

I think we should look for alternative if we can't change what's happening. Limit bitcoin transactions and if you need rapid transactions, look for alterantives.
Maybe ease a bit of strain by moving to segwit, or why not try lightning network. If that don't satisfy us, there are so called improvement on bitcoin blokchain by forking it. They might be doing great with fees. Or even try different alts that are promising feeless transfers.

[BrewMaster]

i think the halving contributed to the current fee situation and the mempool bigger backlog but it is not the biggest reason. the main reason remains the price rise and traders flooding the network and i wouldn't dismiss the possibility of an orchestrated spam attack against bitcoin right after halving.

Roger Ver, Bitcoin has 40x higher value than your bitcoin cash. Even XPR has gained more trust among users than bitcoin cash.

trust? i don't think so. both of them are pump and dump centralized shitcoins in the eyes of the community. the only reason why anybody has ever touched these altcoins has been their pumps and possibility of gaining some profit. that includes altcoin exchanges too.

[Velkro]

Miners are happy, while we suffer?
I have observed recently that the transaction fee for bitcoin transfers has significantly increase, I was wondering if this would help bitcoin to grow further if people are suffering from high fees while miners are doubling their income, is this the result of the halving we have been anticipating?

Cant agree here at all, at all.
We are not suffering. Fees payed to miners are used to secure Bitcoin directly. Think about it like that.
Miners not earning much from fees where there is low traffic in network so most of the year. In case of more attention Bitcoin receive traffic grows and then miners earn which allows them to continue securing network at very high level.

Its all connected, it works to benefit Bitcoin.