If bitcoin reach $20k fee will be huge?

[dhru9]

If bitcoin reach $20k fee will be huge?
is it going to get worse and worse the more the price up? or it fixed itself

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[Oshosondy]

Normally, if bitcoin increases in price, that means the bitcoin fee will increase, even if not increasing in bitcoin, it will increase in dollar, but if the mempool is congested, that means the price will also increase in bitcoin because miners only take highest fee first. And if bitcoin price increase, that means people buy it more, which means more people are using bitcoin, this will result to people making more transactions, which means the mempool will normally be congested than this time which will increase the fee thet more.

The scalability issue have to been addressed, something should be done, like the lightning network, but people using the lightning network are not much, but it can be an alternative way to geting faster transactions with much cheaper fees. Also, use of segwit address will help. Also let us expect more approaches in the future that will tackle the high transaction fees.

[shield132]

If bitcoin reach $20k fee will be huge?
is it going to get worse and worse the more the price up? or it fixed itself

Fees are still high and if it reaches 20K and even more, without doubt it will skyrocket again. I thought we would be more prepared for this time but from the current situation, it seems there will be new 2017 in terms of fees. But the great thing here is that we have a lighting network and more people know about it, so fees shouldn't be a huge problem there. A lot of people will move on lighting network and it will be implemented by a lot of service providers, otherwise, it will be hard to use bitcoin. I want to keep most of my bitcoins on certain wallet and when I need for example some bucks, I don't want to pay tens of dollars in fees. There are many like me.

[Oasisman]

Fees will normally get high as well. Remember Btc's value is based in USD.
If you set 1000 sats transaction fee and that currently valued $0.132 in Btc, then suddenly Btc reached $20,000, 1000 sats value will never be the same when Btc was $13,000.
Another thing is the transactions traffic in the mempool that causes the confirmation waiting to be longer, thus forcing people to put a higher fees. Usually happens during bullrun.

[Questat]

Fee is high when the network is busy, but on ordinary days, fees are reasonable, last time bitcoin went to $20,000, there was a chaos in the market and the fee was really high but if it will be stable at that price after it will reach at that level again, I think we will not complain of the fee.

As bitcoin continues to grow in value, we cannot deny that bitcoin is not anymore suitable for micro transactions, altcoins are now more suitable for that, however, bitcoin owns a great liquidity, so people who usually transact with a decent amount will always prefer bitcoin as the fee is still comparably low compared to centralized platforms like paypal or the like.

[mocacinno]

There's no direct link between the fee and bitcoin's FIAT conversion rate.
The fee (in sat/vbyte) only depends on: the fee, the size and the amount of other transactions currently in the mempool. If the cumulative size of transactions entering the mempool is equal to or less than the cumulative size of transactions that fit into blocks during a certain timeframe, the fees will decrease and vice versa.

It is true however, that during a price peak, it's not unusual to see more transactions being broadcasted, so it's not unusual to see the fee rise.

Ofcourse it's obvious that if you're looking at fiat values, even a status quo will mean an increase in fiat value of the fee... A 2000 sat fee is a 2000 sat fee, but the fiat value of a 2000 sat fee at a time when the conversion ratio is $13000/BTC is 10 times less than a 2000 sat fee at a time when the conversion ratio is $130.000/BTC.

If you're worried about the fees, it might be a good idear to read up about the lightning network, or convert some of your BTC into a stable altcoin, or at least consolidate your outputs when the average feerate dips for a couple of hours...

[fauzan123]

If bitcoin reach $20k fee will be huge?
is it going to get worse and worse the more the price up? or it fixed itself

I think so far the cost has remained at a minimum of 20k satoshis, I think nothing has changed from this even though the price of bitcoin continues to rise. If we are based on the price in dollar conditions, of course it will be different, but we should see it in BTC so that everything looks the same, nothing is different.

[philipma1957]

Okay look at this chart

https://bitinfocharts.com/comparison/bitcoin-hashrate.html#3m

hashrate dropped from 157 eh on oct 17 to 101 eh on oct 28.


so blocks made dropped 33% so transactions backup and fees   drop..   edit go up since block fill up

look at this

https://diff.cryptothis.com/Latest Block:   654656  (30 minutes ago)
Current Pace:   86.3790%  (1473 / 1705.28 expected, 232.28 behind)
Previous Difficulty:   19298087186262.61                            
Current Difficulty:   19997335994446.11
                          
Next Difficulty:   between 17302650375895 and 17473468395818
Next Difficulty Change:   between -13.4752% and -12.6210%

Previous Retarget:   October 17, 2020 at 11:34 AM  (+3.6234%)
Next Retarget (earliest):   Monday at 11:43 AM  (in 4d 4h 55m 37s)
Next Retarget (latest):   Monday at 3:33 PM  (in 4d 8h 46m 15s)
Projected Epoch Length:   between 16d 1h 8m 22s and 16d 4h 59m 0s

a diff drop from 19.997 to 17.473  is really big

that means lots and lots of gear went off line in the last 10 days

so less blocks made

all of the above is factual.

Most likely due to Chinese rainy season power rates ended for this year. Lots of gear gets shut down.

This has more effect then price for right now.

[mocacinno]

--snip--
I think so far the cost has remained at a minimum of 20k satoshis, I think nothing has changed from this even though the price of bitcoin continues to rise. If we are based on the price in dollar conditions, of course it will be different, but we should see it in BTC so that everything looks the same, nothing is different.

It makes no sense talking about "minimum costs". The fee is calculated in sat/vbyte. If you say the minimum "cost" is 20k satoshi's, that'll only lead newbies the wrong way.

A one input, 2 output transaction from a native segwit wallet has a size of ~180 bytes, at the moment you should pay at very least >200 sat/vbyte. 200*180 = 36k satoshi's.

And that's for a tiny transaction, and not paying the optimal fee but barely the minimum fee.

If you have bigger transactions (2 or 3 inputs, 2 outputs, non-native segwit wallet) and you want a big chance of getting confirmed in the next 2 or 3 blocks, your fee is rather going to be in the 130k sat range.

But if you talk about the minimum fee, that's still 0. 0 fee transactions are still theoretically possible, but allmost no nodes will relay them, and allmost no miner will put them into a block he/she is trying to solve...
IIRC, the default minimum relay fee is 1 sat/byte, so for a "small" transaction that's only 200 sat's... Offcourse, at this moment in time, your transaction will not be mined untill the mempool is allmost completely empty (which can take days/weeks/months)

[GeorgeJohn]

Normally, if bitcoin increases in price, that means the bitcoin fee will increase, even if not increasing in bitcoin, it will increase in dollar, but if the mempool is congested, that means the price will also increase in bitcoin because miners only take highest fee first.

From my perspective you have said it all, I really like your suggestion because the fees of bitcoin is determined by the values or how large your transactions is, and it likely works with the increments of bitcoin because provided that bitcoin price is high the fees will be high and when is low the charge will be also  low, so you have answered the question from my views.

[hridoyb]

Yes, bitcoin can increase their fee when it will be 20000$.Nowadays people interest in online platforms day by day and they use bitcoin other currency and debit or credit or visa Mastercard.As a result, they increase fee and rule for this so without doubt bitcoin fee will be increasing so high so just wait and see.If you want to your transaction so fast you need to pay high as usually so when it will be 20000$ this time  fee will high because people use it more transaction

[Expecto]

If bitcoin reach $20k fee will be huge?
is it going to get worse and worse the more the price up? or it fixed itself

Technically, it is a fact that Bitcoin transaction fee increases when the price increases. But I think this is not a problem that can't be solved. They made Lightning Network for faster transactions. They can also build a system that people can make transactions with Bitcoin not only faster but also cheaper.

[Pffrt]

Logically it will increase as the price increase. Because when bitcoin price increases, number of transactions will be increased too, as a result for getting faster confirmation, there will be a competition between the users. Whoever will pay high fee, will get their tx confirmed faster.
However, if BTC price remains stable at $20k, I think fee will decrease too eventually.

[pawanjain]

Lets assume bitcoin has reached $20k. Since bitcoin showed a good bull run many people started buying it more.
This means more number of transactions are being broadcasted in the bitcoin blockchain. Hence the mempool size gets increased the network becomes congested.
Since people want their transactions to be confirmed soon they start paying higher transaction fees and this leads to increase in the price of transaction fees.
The transaction fees will only decrease when the mempool size decreases and the network is not congested.
So eventually yes the transaction fees will increase but as time goes it will come back to the normal price as the sudden surge decreases.

[pixie85]

The fees will of course rise if the price goes to 20 thousand but I'm sure that it won't be as bad as in 2018. That situation was different with network undergoing a transaction spam.

I don't see high fees as something abnormal, on the contrary, treat it as something bigger and more valuable. The cost of transporting $1000 worth of sand is going to be lower than the cost of transporting an amount worth $2000 and nobody finds that strange or arguable. Try sending a million USD to Europe and you'll see what the fees will be for that transaction.

[Ayiranorea]

The transaction fee increases with reference to the market change. Apart from this whenever more number of transactions get stuck on the network automatically the transaction with the higher fee will be confirmed first. By the time there'll be increase in the transaction fee. This happens quite often with bitcoin whenever there is increase in the price of bitcoin.

[1kodumtek7]

As long as Bitcoin increases, the volume will increase as a consequence. With the increase in volume, the number of transactions will rise and transactions that are not approved on the network will accumulate. Thus, we will have to pay more fees. This means that if bitcoin is 20k, transaction fees will fly out.

[Oceat]

I don't think the fees will rise too high. This will still be a great deal.

If you happen to be here on the last bull run you will see how much the transaction fees cost that time. So it will going to happen again if Bitcoin hits $20k again and even now that it touches $13k the transaction fees are starting to cost high based on my recent trade. It's normal to see this happening nowadays since more people will tend to do more trades because of the high price of Bitcoin.

[Mahdirakib]

Transaction fee doesn't depends on bitcoin price. Network condition is the main reason of higher fee. If bitcoin price goes up the fee will remain same (based on network condition as it should be) in btc amount like other times. When the price goes up the same amount of btc fee become more worthy in usd value. For this the fee will be little bit more in usd value but not huge. And you should also know these thing.

the fee does not depend on the amount you're sending, it does depend on network conditions at the time and the data size of your transaction

Source

[avikz]

If bitcoin reach $20k fee will be huge?
is it going to get worse and worse the more the price up? or it fixed itself

That's the practical issue! We have seen a similar trend during the last time bitcoin reached its ATH. Even if you see the fees chart for last 5 days, it has already started going up! Probably it's a great time to mass adopt LN! There is no way to automatically fix this because it is directly linked to the volume of the transactions.