BitCoin and bitcoin high transaction fees

[bryant.coleman]

I don't understand , I live in india and here we can use UPI like google pay and phonepay to easily pay money within seconds and a touch and no extra cost or transaction fees is taken . But when i try to ay with bitcoin like 1000 ruppes i have to pay around 120 ruppes in fees to get the transaction done in 10minutes .  So for a order of 1000 i have to pay 1120 ruppes and also wait for 10minutes for the transaction to be done .

So why is bitcoin or any other cryptocurrency more reliable or disruptive if it cant even help me in paying a simple small amount . Can somebody lease elaborate what i am missing here . Thanks in advance

Your point is very much valid, and this is one of the reasons why many of the merchants have removed Bitcoin as a payment method. Under current circumstances, it doesn't make any economic sense to use Bitcoin for medium-sized payments. I would rather treat it as an investment asset, rather than as a currency. You can use it for payments, in special circumstances (such as making cross-border transactions, or to make anonymous payments).

[Astvile]

Bitcoin is not advisable to use for micro transactions, fees are too high I have experience one time when I was sending $5 worth of bitcoin the fees are almost doubled the amount I'm about to send.Better to use other altcoin for microtransactions of ewallets available in your place. XRP can be a good secondary choice if you are looking for alternative way sending crypto with less fees.

[CasherUp]

Someone could explain to me a little more about this increase in the bitcoin fee I know why the increase happened but I am not very sure about that

[bryant.coleman]

Someone could explain to me a little more about this increase in the bitcoin fee I know why the increase happened but I am not very sure about that

It happens time to time. You can check the Mempool size here:
 
https://www.blockchain.com/charts/mempool-size

Mempool size is the total size of the transactions which are to be confirmed. If the size is high, then the transaction fees also will be relatively high. Last time I checked, the size was around 32 million Bytes. Assuming that the average Block size is 1.2 MB, it is going to take around 30 blocks to confirm all these pending transactions, in case no new transactions are added.

[amishmanish]

You are probably paying around 1.7$ fees for each transaction. Mate, Believe me  UPI is giving you the most luxurious transaction fees. UPI is saving how many rupees you don't know about it. We usually pay (6-7)$ per transaction fees through exchanges or crypto wallets. I think i need to choose UPI payment system. Just give me the link. Cheers.

You will not find a UPI payment option for transferring bitcoin. Some exchanges will now allow you to buy BTC using INR and pay through UPI. Yet, when you want to make a pure BTC transaction out of these centralized wallets like Zebpay, WazirX etc, the fees will depend on their own whims. If you store crypto on your own desktop wallet like Electrum then you can choose to go as low as you want depending on how quickly you want the transaction confirmation. I suggest paying a one time fees to transfer from these wallets to your own desktop wallet. If you use the exchange wallet for every transaction (for IEOs, staking, changelly, purse.io, forum transfers etc), the fees will be exorbitant.

Jermoe Tash also highlighted a great example as to where the BTC transactions really shine. If you use centralized wallets and exchanges, they will of course charge the standard fees for even smaller amounts.

[imstillthebest]

Someone could explain to me a little more about this increase in the bitcoin fee I know why the increase happened but I am not very sure about that

It happens time to time. You can check the Mempool size here:

yes it happens all the time but i think he want to know the reason behind the increase in the fee not the mempool .

i know mempool can be useful to check the fees or the details related to it but there could be another reason on why the fees can shoot up sometimes .

 like for example when the price increase or when there is a bull run but we might want to know also if what are the cause for the bull run . thankfully that btc fees are now normalise and i havent seen any major complains .

[worldofcoins]

I don't understand , I live in india and here we can use UPI like google pay and phonepay to easily pay money within seconds and a touch and no extra cost or transaction fees is taken . But when i try to ay with bitcoin like 1000 ruppes i have to pay around 120 ruppes in fees to get the transaction done in 10minutes .  So for a order of 1000 i have to pay 1120 ruppes and also wait for 10minutes for the transaction to be done .

So why is bitcoin or any other cryptocurrency more reliable or disruptive if it cant even help me in paying a simple small amount . Can somebody lease elaborate what i am missing here . Thanks in advance

You have to pay a fee to make money. There's nothing free in this world you have to pay something for it.
But still, I think bitcoin charge less fee compare to the other payment methods like PayPal, or Payoneer and banks.
Anyways I don't see any increment in bitcoin fees its fine in my area. I just pay a few dollars on my big translations.

[so98nn]

More or less:
Just for your information to compare, in 2017 we were paying ~30$ for a single transaction. If you're worried with the BTC transactions fees, you may take a looko at XRP or Dogecoin for example, since both have cheaper fees

Actually if you convert the amounts op stated into USD then it’s still real costly for the Indian rupees. Well bitcoin to INR conversion is big amount as we all know INR to USD is big difference here. 12% in the fees alone is big difference and would be good if dropped next to zero. Yes we understand that there are different types of fees and charges that needs to be paid for blockchain working. However being public ledger it does use free power from all the resources to work and store its blocks. This has to be repaid I guess, at least in terms of fees. 

[bryant.coleman]

Actually if you convert the amounts op stated into USD then it’s still real costly for the Indian rupees. Well bitcoin to INR conversion is big amount as we all know INR to USD is big difference here. 12% in the fees alone is big difference and would be good if dropped next to zero. Yes we understand that there are different types of fees and charges that needs to be paid for blockchain working. However being public ledger it does use free power from all the resources to work and store its blocks. This has to be repaid I guess, at least in terms of fees. 

Right now there is no logic in keeping the fees very high. The fee reward doesn't constitute for more than 20% of the income for the miners. It is causing a lot of damage to the adoption and acceptability, and at the same time the miners are not gaining much out of it. And as you pointed out, those who transact small amounts are worst hit. Imagine paying $5 as fees for a transaction that is worth just $25.

[Blackrain13]

We have nothing to do about the transaction fee of bitcoin.  While bitcoins value keep on increasing, the transaction fee is also increasing but despite of that it was still a good investment. If you want to avoid paying a high bitcoin transaction fee then don't use it. Find another way that you can afford to pay transaction fees which heaper than bitcoin.

[Bttzed03]

We have nothing to do about the transaction fee of bitcoin.  While bitcoins value keep on increasing, the transaction fee is also increasing but despite of that it was still a good investment. If you want to avoid paying a high bitcoin transaction fee then don't use it. Find another way that you can afford to pay transaction fees which heaper than bitcoin.

It's not necessarily true that transaction fee increases when bitcoin price increases. Do not calculate it in terms of fiat ($). You can still send the same amount of btc at 1 sat/byte (or /vbyte) even if the network is congested but it just takes longer time before it gets confirmed (assuming it's not dropped from the mempool).

Another way to save on fees is to send on weekends. It's quite known to keen observers that the network is not that congested around those times. Based on my experience (literally just hours ago), I'm able to send at 1 sat/vbyte and it was confirmed in 10 minutes.

There are also days that fees are low on weekdays but it doesn't happen so often. Check mempool.space to monitor the network and check their suggested fees too.

[MCobian]

I don't think any system is perfect, and neither is Bitcoin. I admit transactions with Bitcoin have high transaction fees. Please don't focus
on the transaction fees only, but what are the benefits that Bitcoin provides. When compared to using a bank with a longer process if you
have to send money abroad, it could take several days to arrive. While Bitcoin is only a few minutes away. Then use a bank that must
perform KYC procedures, while our Bitcoin can be anonymous transactions. If you are not too rushed, you can lower your Bitcoin transaction
fees, but the process can take several hours to complete. Still object to transactions with Bitcoin, you can use altcoins such as XRP, LTC or
DOGE to get cheaper transaction fees and faster processing.

[romero121]

The transaction fee in the last month has increased massively. This is all because of the large number of transactions getting congested on the network. Higher the demand is a cause and the transaction fee is spread with the miners who is responsible for the network to function without congestion. In recent days rise the fee has increased more the five times of the old fee.

Right now the better choice is to trade it for low transaction fee based assets and then once again change it back to bitcoin at the right moment of market fluctuation so to equalise the value.

[leoqe]

Changelly Pro is a nice exchange with quite low fees. Been using it for a week or so. No problems and only positive emotions.

[achach]

High fees will disappear over time, rest assured. They will find another way to make money.

[FinneysTrueVision]

Bitcoin is censorship resistant. Centralized payment systems like Google Pay can close your account anytime they feel like it and Google gets to keep your money. The tradeoffs in convenience and fees are necessary to enable a monetary system independent of government or corporate control.

[Chris Barth]

The problem is that all you were told about bitcoin was the pros with no cons. Just like every other thing, bitcoin has its disadvantages. Let's use the fees as an example. Bitcoin transaction fees can vary at different times. Just like the etheruem network got really crazy. Also, the confirmation time "10 minutes" as you say can actually vary too. It could be based on the fee you paid (higher fee = lesser time) and some other factors. The truth is, I value bitcoin as I am even a bitcoin ambassador. However, I know and also expect everyone to know that nothing is 100% perfect (including bitcoin). Just try to see what good you can do out of the pros of bitcoin.

[pixie85]

The transaction fee in the last month has increased massively. This is all because of the large number of transactions getting congested on the network. Higher the demand is a cause and the transaction fee is spread with the miners who is responsible for the network to function without congestion. In recent days rise the fee has increased more the five times of the old fee.

Right now the better choice is to trade it for low transaction fee based assets and then once again change it back to bitcoin at the right moment of market fluctuation so to equalise the value.

It's not only because of higher demand.

There were many cases of transaction spam like in 2018 when fees went through the roof because BCH was trying to advertise as "the new king" and successfully spammed the network with small transactions.

There were also a few instances where companies tried to advertise via blockchain transactions sending dust to random wallets so that their owners would investigate, look into the transactions and discover that they contain messages, or a sender address is a unique vanity address containing the name of a company or a catchphrase.

OP's mistake is trying to send small transactions like 1000 rupees, which is about 13 dollars when a network fee for the transaction is 3-4 USD but think how cheap it is for someone who moves 100 thousand USD or a million.

[Leviathan.007]

I'm not living on India and don't know how much is the 1120 ruppes if it's low or too high. But if you are complaining about transaction fees you should know and you are not forced to pay any exact amount and if you are not in rush or something you can set a lower transaction fees however by lowering the transaction fees you will need to wait much longer to receive the transaction. An other way if for you is to lowering the inputs to pay less transaction fee. Generally, whenever bitcoin price moves hugely on the market usually transaction fees will increase because the network will be more busy during that time. Since miners will auto-take the translations with higher transaction fees, if you put a lower fee you will need to wait for a longer time.

[shield132]

I don't understand , I live in india and here we can use UPI like google pay and phonepay to easily pay money within seconds and a touch and no extra cost or transaction fees is taken . But when i try to ay with bitcoin like 1000 ruppes i have to pay around 120 ruppes in fees to get the transaction done in 10minutes .  So for a order of 1000 i have to pay 1120 ruppes and also wait for 10minutes for the transaction to be done .

So why is bitcoin or any other cryptocurrency more reliable or disruptive if it cant even help me in paying a simple small amount . Can somebody lease elaborate what i am missing here . Thanks in advance

Seems you haven't heard anything about lighting network, so I suggest you to check it because it's a solution that you need right now. Lighting network offers you instant transactions with almost zero fees. You receive bitcoins, just have slightly different wallet address but that's okay, you can send bitcoins from lighting network address to normal address.

So, from lighting network to lighting network (wallet address), you get instant transaction with almost zero fees.
From lighting network address to normal bitcoin address, you are able to send but you'll have to just pay fees normally and transaction time will be long, just like from bitcoin core to bitcoin core.