I have seen lots of thread emphasizing the benefits of high transaction fee as a great incentive for the miners as it could help to increase miner’s decentralization and I don’t have a single problem with it because a decentralized network is only possible with incentives for miners but we are still missing the point of what exactly is the cause of this congestion.
But for now you can’t blame me for been furious for spending close to $5 to send a $10 worth of bitcoin. That’s why many are of the opinion that bitcoin shouldn’t be used for micro or smaller transactions
I think the same, paying a high fee on the future may be inevitable, as the demand for bitcoin surges the demand for getting a fast confirmation will increase as well,
first of all.. MINERS have nothing to do with the number of transactions or have any hindrances based on block sizes..
MINERS just get header data that never changes size no matter how big a block is, no matter how many transactions there are
secondly
more transactions paying less fee can actually lead to a bigger total block mining fee
yes math works that way
$20fee each for 2000tx = $40,000
$10fee each for 8000tx = $80,000
good economics is more transactions paying low fees
bad economics is less transactions paying higher fees
think about it
if fee's go up individually for a small group of transactions
less people want to transact, causing:
fee's go up individually for a small group of transactions
less people want to transact, causing:
fee's go up individually for a small group of transactions
less people want to transact, causing:
miners to not be able to afford to withdraw their earnings
because the fee is more then their earnings. so they stop mining
if a block is 2000tx. but you want a decentralised mining of 12 pools equal hashrate of 200,000 asics in 200,000 homes for that pool
then the 'dust' mining earnings per block is 1% of a fee each
if they cant regularly withdraw their earnings they wont keep mining
think about it..
if a miner is only getting 1% of a average fee as earnings per block. every 12 block
it would take them 1200 blocks of the network just to cover the fee.. meaning they would probably only withdraw every 120,000 network block
which is 2.5 years
the reason we are not in a situation of "ne asic per home" decentralisation to be at the extreme of withdrawing once per 2.5 years.. is because miners are owned by users that have hundreds of miners where they are able to withdraw each month
but the utopian dream of having lots of individual hobby miners to decentralise would cause chaos economically