BitCoin and bitcoin high transaction fees

[snaked06]

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

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[LeGaulois]

More or less:

Bitcoin is a network and we are different people/entities participating in. You, me, and everyone using it. Miners are needed to validate transactions and secure the network (so you too), and they can not spend resources for free (it costs them a lot of money).
So they help you and you help them with the fee attached to your transaction. This is their incentive. We can't operate a decentralized environment for free

Reliable for its security, disruptive because of the definition (a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network)

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

IRL, when you pay with your VISA card, there is a cost too. You don't see it because you're not the one paying it, but the merchant.

[gatti]

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

Actually you are new to the trading of crypto,so it's seems as a big fee. But from long the fee is like that in exchanges.The normal transaction was happen with of bank account ,so you no need to pay anything as a fee.While trading of bitcoin,the exchange is acting as a middle man to earn something as a fee.

[CarnagexD]

It is that bitcoin isn't convenient at all times. If bitcoin could send better than fiat then it should be adopted right away when it was released. This is why we call it 'alternative'. You're not missing anything, it is just that you are too fan of bitcoin that you think you can just use it the way you use the fiat or digital currency. Besides, bitcoin these days is not seen as a currency but rather an investment due to its volatility so why bother yourself to spend it when it can double moment after you spend it?

[BitcoinGirl.Club]

Consider bitcoin as a asset for you. Like Gold.

Here is an experience I am sharing. Other day my wife went to the Jewellery shop to sell some of the Gold she has. The Goldsmith gave her a price which is over 15% less than the current market price plus whatever the weight it had they took off 20% from it which means the total weight lost 20%. If we do the math then all together she lost over 35% value of the gold she had.

With bitcoin you are not going to lose that much.

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 .

I will suggest to study about bitcoin. Comparing with those centralized payment processor is not the thing with bitcoin.

Study about-
Decentralization
Peer to peer
Nodes
Be your own bank
Limited supply of wealth
Anonymity
and not the least Blockchain evidence

[Jstandhope]

Although Bitcoin transaction fee is high but it's better because it's doesn't work like the bank system where your money hang due some reasons and you have to wait for some work days after filling complain form

[Jstandhope]

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

I understand your pain at least I had such Experiences too but then you can't compare the both system. No system has 100% Efficiency, but then I believe as you  grow in your use of Bitcoin you get to understand better.

[bitmover]

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 . 

Do you really need to get the transaction confirmed in 10minutes? Not even the banking system is that fast. In Brazil, a bank transaction take about 15-30minutes to get completed, and it is called "instant".

If you can wait about 3-5 hours you can make a bitcoin transaction with less than 0.10 usd. If you are not at hurry at all you can pay about 0.01usd. Almost free. Ofc that depends on networking congestion as well.

[BitcoinGirl.Club]

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 . 

If you can wait about 3-5 hours you can make a bitcoin transaction with less than 0.10 usd. If you are not at hurry at all you can pay about 0.01usd. Almost free. Ofc that depends on networking congestion as well.

Most of the time I use 1 or 2 sat/Byte when I broadcast a Tx. I know people have their own priority but in my case it works well.

Do you really need to get the transaction confirmed in 10minutes? Not even the banking system is that fast. In Brazil, a bank transaction take about 15-30minutes to get completed, and it is called "instant".

When you do online transaction in the country then it is almost instant (not sure about very large amount) but does anyone count when you are about to deposit or transfer money to someone else by going to the bank. You need to stay in the line before your turn comes up and in a busy day the line is very long and frustrating. If we are going to make an international payment/transaction then we are taking about several weekdays waiting period to get the money on the other side.

[Wapfika]

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

If your fiat transactions is much better than crypto then use it forest, bitcoin transaction can be an alternative when you do transaction in non p2p or when you have transactions with other people in other countries its much easier to use as well it have features that we will be able to invest or hold it that the amount will increase better than banks can offer.

[Harlot]

There are other ways to avoid higher fees and avoid them completely. If the regular Bitcoin network has high transaction fees you always have the option to use SegWit as well as Bitcoin's LN if they accept LN as payment. If you don't want a complicated option I think local crypto wallets in your country aka custodial wallets have what they call an off-chain transaction where your Bitcoin transaction is instant and aside from that is free. Fees here isn't something that can destroy Bitcoin but merely is just an obstacle that the Bitcoin devs can improve on, they have introduced various scaling techniques in order to make Bitcoin more viable as a payment option for more people.

[ChiBitCTy]

Others here have done a good job explaining things, and I echo most of that.  I would just add keep in mind this is going to take time, Rome wasn't built over night, as the saying goes.  There are still many other advantages that others have pointed out with the truth that it's also an investment , an asset, and hedge asset etc which gives in value and "allure", so to speak.

[pooya87]

those centralized fiat wallets should not even charge you anything, instead they should be paying you some money as a share in the profit they are making. you just hand over your money to them and they have full control over it and can do with it whatever they want. that money doesn't just go in a box and stay there doing nothing, they are making profit using it and then charge you when you want to make a transaction which is a simple change of balance in their database most of the times without any cost!

in bitcoin, nobody has control over your money but you. it was already explained what the fees are for so i won't repeat it. but in a comparison if you give up control and go the centralized route (which is wrong BTW) like using coinbase you won't pay any fees when it is centralized to centralized transfer.

Miners are needed to validate transactions and secure the network (so you too), and they can not spend resources for free (it costs them a lot of money).

miners don't validate transactions, nodes do. miner is a worker that as said dedicates resources (hash-power, electricity) to work (aka mine bitcoin) to find a block.

[amishmanish]

Great question. From an Indian perspective, using bitcoin for actual transactions today is of no value in terms of transaction ease and cost if you compare with the numerous UPI applications. There simply aren't enough customers and merchants to provide an experience similar to normal transactions that LN can provide. LN isn't deployed widely because of the legal uncertainty. Especially after the Unocoin founders had their ATMs in Bangalore confiscated by the Police, the enthusiasm died a quick death. Your experience is bad because of a combination of of immature technology (LN) and low penetration due to govt orthodoxy in financial matters.

What bitcoin promises is a decentralized method to invest and insulate your savings from fiat inflation. The privacy of your transactions ensures that you are not advertising your spends to Google or others. You don't have to worry about the numerous legal hurdles in exchanging value when you provide online services. Though, this can lead to tax events for which i suggest you read posts by @teosanru in the Indian Local sub.

Apart from that, Bitcoin is exciting and novel in terms of the technology and its open source ethos. It is a completely new kind of money. There is no harm in getting involved.

[davis196]

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

The whole problem is that Bitcoin transactions are irreversible,while fiat money transactions can be reversed.
This creates a risk of scams,when dealing with crypto/fiat transactions.
The increased risk of scams leads to increased fees and other obstacles,like KYC(ID verification) and different kinds of limitations.Basically this is what stops mass Bitcoin adoption worldwide.
By the way,I wish I had Google pay in my country.

[joniboini]

I don't see how irreversible transactions create KYC problems. Irreversible transactions can protect the merchant and buyers can use escow if they want to. Increase in fees happens because people are trying to make their transactions get confirmed on the next block, which leads to 'gas war' in the Bitcoin network. If you make transactions on Saturday-Sunday, there's a high chance you can just do it for 1 sat/vbyte. You need KYC when you use centralized services, if you don't want to do it then you're fine without doing anything. Scams or not these things will eventually take place even if you use fiat.

[Warkop]

In my opinion, when you want to do something using Bitcoin, you should first find out how to transact in Bitcoin and lose or not if you want to use Bitcoin to transact, Transacting in Bitcoin does have to use fees so that your transaction runs smoothly, because your transaction is done with miners and then confirmed , in my opinion it is very reasonable when you transact require fees because all mining requires a very large capital.

[slaman29]

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

Just wait and see, yeah Bitcoin's not perfect yet and the micro transactions especially kills it when compared to others even digital fiat. Once lightning becomes a norm for apps also you'll see how fast and easy (and cheap) it can become. It's still young, just be patient and wait for it. Meanwhile we can also learn lightning.

[cryptomaniac_xxx]

Same here, we have other services that is instant and cheap, but still there are people here who are still in bitcoin and we are so lucky that we have local exchanges supporting bitcoin->fiat->instant services. But you have to understand that bitcoin today is less being used for micro payments. But instead it developed into a asset, one of the best for this year. But I have transacted bitcoin with a 1 sat/byte fee, took me 2 days, but it doesn't bother me because I'm not in a hurry anyways. So if you are in a hurry and wanted quick transactions then perhaps you should look for other alternatives.

[verita1]

From what I see in the Play Store PhonePe is a good application with multiple banking and investment functions. If the fees they apply to buy bitcoin seem expensive to you, you simply have to resort to other exchange platforms to do them as P2P.
Most advise not to buy crypto with credit cards but if it is your only option you will have to assume the expense.