Bitcoin high fees

[bbc.reporter]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

[ranochigo]

Some exchange actually has a fixed withdrawal fee. There is thus no difference between withdrawing at 10sat/vbyte or 100sat/vbyte for the user. Since the transactions can always be batched, the TX fees paid by the exchange can still be greater than the TX fee paid by the user to the exchange.

A notable example is Binance which charges 0.0005BTC per withdrawal.

There are also probably a smaller proportion of scheduled payments which cannot be delayed. Given that the high fees has persisted for some time, I imagine that there is no recourse for this.

[OcTradism]

This might be transactions from exchanges or going to exchanges, however, why the hurry?

Exchanges don't lose anything when they use overkilling transaction fee. Why they don't lose anything? They always pass the transaction fee to the customers that is hidden in the withdrawal fee.

They charge every customer with every withdrawal request with an expensive withdrawal fee. They are totally free when they use over killing fee for batch withdrawal transactions they broadcast on the bitcoin network. All costs are charged on the side of customers, not exchanges.

When the network is crazy like this, it will take about 4 weeks to be resolved and back to normal. It even can last longer than 1 month.

A notable example is Binance which charges 0.0005BTC per withdrawal.

With this withdrawal fee rate for each withdrawal request, Binance and other exchanges can use a transaction fee rate at 300 or 400 sat/vbyte and they won't lose anything.

[btc-room101]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

Once upon a time the liars said "You can use BITCOIN to buy a cup of coffee"

Let's see, if I transfer 0.001BTC they charge me $20, by the way 0.0005 BTC is $30

So what's it good for? I'm not talking about buying a Tesla. Even a $1,000 purchase at $20, is still more than Visa; Where VISA only charges the merchant, not the customer.

What is BTC good for? You can't keep it, you can't use it for normal transactions. The GOV tracks it. It's NOT private. It's NOT fungible, meaning that there are three different kinds of BTC, virgin, pristine, and mixed, and most is mixed ( coin-joined ), which makes it worthless.

Tell me again, what's BTC good for?

Oh, yep its good for day trading and gambling on the exchanges, but like the guy here say's. It's $30 on each ingress/egress; and most people only hold 0.05 BTC, so all their 'investment' gets eaten up on fee's, which is why 90% of all BTC traders lose 100% of their cash within the first 30 days of playing BTC.

[pooya87]

This might be transactions from exchanges or going to exchanges, however, why the hurry?

Isn't it obvious?
When the user makes a withdrawal request, they want to receive their bitcoins in whatever destination it has, as soon as possible. So the exchange has to pay high priority fee or their support staff are going to be flooded with angry tickets and their reputation is screwed.
Similarly when the user makes a deposit, they want the coins to be confirmed as soon as possible so that they can use them right away.

When there is less space compared to users (low supply, high demand) the fee (cost of that space) goes up due to the intense competition for that space.
This is why we need to scale main-chain more and we need exchanges to move to LN sooner.

[yazher]

This is not really good especially for those who only have a few BTC left for their transaction fees. they cannot make fast transactions just like what happened to us last week when it got stuck because of that kind of strange fees in the blockchain network. I thought this kind of problem only happened on Ethereum, I never thought that it could sometimes happen in the Bitcoin blockchain network as well.

[bbc.reporter]

@pooya87. Thank you for the explanation, however, you do not speculate that some of those transactions are also sending to the exchanges? There are 2 coincidences already if we are in the beginning of the bear market. CME futures for bitcoin was listed on December of 2017, COIN was listed April 14 and the fees have never been higher since December of 2017.



Bitcoin’s “digital gold” narrative may be getting stronger, as investors in the cryptocurrency are more incentivized than ever to hold rather than spend it. Making a Bitcoin transaction is now the most expensive it’s ever been: the average cost of sending the cryptocurrency is now $59.87, according to the latest BitInfoCharts data.

That’s more expensive than the last bull run, in December 2017, when the average cost hit $55.17.

Source https://decrypt.co/68680/bitcoin-transaction-fees-all-time-high

[Kabul]

Because exchange wants to give users best experience. Not many customer want to receive their bitcoin slower than 24 hours and thus, exchange have to boost their transaction speed by increasing the fees.

Binance fees are very high compare with others. Coinbase might be the cheapest. I transfer my bitcoin from coinbase and it charged only $1.5

[dansus021]

exchange will and stay to pay bitcoin high fee its because its fixed rate and people like whale   doesn't pretty care much with fee and miner most likely using lower fee for transaction

and to be honest bitcoin right now is not friendly for daily transaction

[pooya87]

@pooya87. Thank you for the explanation, however, you do not speculate that some of those transactions are also sending to the exchanges?

I said it already in third paragraph above. There are lots of deposits too where users send their bitcoins to exchanges. That doesn't have anything to do with bull or bear market though, when price goes up some people sell, some people buy. Same as when price goes down and the fees go up all the same.

and the fees have never been higher since December of 2017.

We still haven't reached 2017 fee levels. A lot of blocks during 2017 had a total of 10 to 14BTC total fees for miners and those blocks were smaller than today's blocks too. These days the total fee of the blocks for "high" fees reach between 1.8 to 2.2BTC for each block.

The reason why you think they are "higher" is because bitcoin price in 2017 was between $900 and $20,000 but today the price is $55,000. Meanwhile we are still paying the same satoshis for the same amount of bytes.

[NeuroticFish]

This might be transactions from exchanges or going to exchanges, however, why the hurry?

Exchanges don't lose anything when they use overkilling transaction fee. Why they don't lose anything? They always pass the transaction fee to the customers that is hidden in the withdrawal fee.

Actually they do lose profit. The withdrawal fees were always big, even when the exchanges didn't pay these huge tx fees. This means that the difference was going to their pockets. Now that difference is much smaller.

This might be transactions from exchanges or going to exchanges, however, why the hurry?

It's because the services try hard to avoid a transaction taking too long to confirm.
A tx that doesn't confirm in a matter of hours means possibly unhappy customer, which then may cost the exchange support time and the customer, especially if he doesn't know much about Bitcoin, may leave for another platform.
I don't know what would happen if a tx doesn't confirm at all; I would expect that some platforms may not even have that part properly coded in, resulting in even more support time.

[rjsolutions28]

Binance fees are very high compare with others. Coinbase might be the cheapest. I transfer my bitcoin from coinbase and it charged only $1.5
[/quote]

Answer:

Using coinbase was the biggest mistake I made. Lol. They do hide their fees in the spread and one time I got my account locked for 3 weeks. Thankfully, it got resolved after so much complaining. I'm using Netcoins and they only charge 'BTC' => 0.0005.

[Gozie51]

Thankfully, it got resolved after so much complaining. I'm using Netcoins and they only charge 'BTC' => 0.0005.

The fees are generally high for bitcoin transaction. 0.0005 for me is still high depending on the transaction. Almost every platform fee is high so is nicer to transfer to convert into smart contracts like BSC for transactions.

[arabspaceship123]

That's been happening for a long time. If Bitcoin finds long term solutions to high transaction fees the numbers of smaller transactions will benefit the ecosystem when they start increasing. $50 withdrawal fees is too much, where were these being charged?

Some places are charging as high as 50 dollars per withdrawal, that's insane.

[GreatArkansas]

Now bitcoin transaction is very high.Better option is Coinbase coz It's might be lower fee than others. I think, It's not special for everyone.

Transaction fees will always be based on the current network, more traffic on the Bitcoin network expect high transaction fees.
Speaking of exchanges for withdrawing a Bitcoin, why not try FTX Exchange, they offer free charges on most of the cryptocurrencies listed on their exchange.
What I also observed is, when the transaction fees for Bitcoin are high, or there is more traffic, the price of Bitcoin is either in strong dumps or pumps.
There are a lot of possibilities why, but for sure, it could be an inflow or outflow of Bitcoins in different exchanges.

[bbc.reporter]

Some places are charging as high as 50 dollars per withdrawal, that's insane.

I speculate that much of those users will presently pay $100 per transaction to deposit their coins back to the exchanges again to dump them hehehe. The fees will also make the poor sell later than the rich.

[elisabetheva]

Some places are charging as high as 50 dollars per withdrawal, that's insane.

I speculate that much of those users will presently pay $100 per transaction to deposit their coins back to the exchanges again to dump them hehehe. The fees will also make the poor sell later than the rich.

of course it is clear that the fees charged are quite high maybe what you say can be true that what you can afford will not matter, but not the other way around.
but those who usually have bitcoin at this time are clearly those who have large funds, it is impossible for those who have, are people who do not have funds, because the price is too high and cannot be reached other than those who are truly able.
So it doesn't really matter other than Ethereum which is also quite high, it will definitely be very affected because the one who usually exchanges is the one who has small funds.

[arabspaceship123]

There's sympathy for small traders incurring astronomical fees for sending relatively small amounts of Bitcoin to an exchange then they've seen the value fall. Now they're stuck, do they keep Bitcoin there or send it back to their wallets? It's difficult to digest whales making large gains when smaller traders struggle with high fees.

Some places are charging as high as 50 dollars per withdrawal, that's insane.

I speculate that much of those users will presently pay $100 per transaction to deposit their coins back to the exchanges again to dump them hehehe. The fees will also make the poor sell later than the rich.

[Questat]

Yes. Fees are still high and may get higher over time.

And it is killing people who just move a few sat to their wallets. Imagine, if you only have $20 and you will have to pay $10 for it, that is really disappointing, nor I can afford to do that rather not continue withdrawing it. Or the other option is to wait until the fees will slow down that only be if we are not in the hurry. But if we are badly in need of that, definitely have no choice but to pay for high fees.

[lixer]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

I don’t think it’s going to be just exchanger’s, you’re forgetting that there are more than a millions of customers on these exchanges that are doing transactions on a steady, both exchange account to exchange, and also to addresses outside of the exchange. There are lots of people who are ready to make transactions at this fees.

I saw someone that made a small transaction of $70 and paid fees that was up to $30 or so, that’s the last thing I think I’m going to do, because I am not ready to make a small transaction and pay a fee that is almost up to half of the money I’m sending, then what’s the need for it? The most annoying thing about this high fees of a thing is that I usually tell people that bitcoin is the best because you can send any amount of money and just pay fraction of it as fees, but now look at where we are .