Excessive Bitcoin fees

[Helena Yu]

Just checked & currently 133 sat/vB so you are looking at over $13 for a medium priority transaction. It has to ordinals spammers. Luckily they don’t seem as rampant at the moment, it comes in bursts which are much rater so in a few hours it should be a lot cheaper to send Bitcoin. Unless it's urgent you should be patient & wait until fees are lower.

Damn!

I thought it's typo because few days ago I check the fees was less than 10 sat/vbyte, now it's surge by thirteen.

The crackdown by Binance to stop accepting ordinals and runes seems not really affect the market, it seems can't be stopped because their community don't mind to trade using swaps.

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[we-btc]

I'm a bit confused about what you trying to say but Bitcoin will never become centralized because Satoshi made Bitcoin for decentralization.

If the fees are rising it's just temporary there is something going on that is why you see transaction fees rise just like today because the price touched above $50k that is why people right now panic to move their BTC to the exchange before it drops and make a profit.

What makes Bitcoin Decentralized?  Nodes? Nodes are not currently making decisions about the network.  Who is?

What are the developers, who are making the decisions about the network(decentralized?) doing to fix this problem?  They are adding Inscriptions and Runes to the network which is increasing the size of the block and increasing fees.

How well is the network going to work with fees at $15 to $30 US dollars per transaction?

Bitcoin has been turned into a centralized TradFi investment for the wealthy.  The exact opposite of what it was intended to be. It was intended to be a decentralized, peer-to-peer form of electronic cash.

Any chance we could get this ship moving in the right direction?

Does anyone care?

[buwaytress]

I thought it's typo because few days ago I check the fees was less than 10 sat/vbyte, now it's surge by thirteen.

The crackdown by Binance to stop accepting ordinals and runes seems not really affect the market, it seems can't be stopped because their community don't mind to trade using swaps.

Doesn't even make sense for me to check these days. I'm just swallowing it when it's above 100 sats/byte, my txs are pretty lean anyway so I don't feel the pain. Can definitely understand what it means for most people with no control or even no fee control. Though you'd have thought by now they'd have taken the effort to understand after a year of ordinals.

A year! Can't believe it's been that long. Buoyed by ATH of course.

[Alone055]

What makes Bitcoin Decentralized?  Nodes? Nodes are not currently making decisions about the network.  Who is?

The fact that no centralized authority or entity is controlling Bitcoin or its network makes it decentralized. Miners are the ones making decisions about the network by mining new blocks containing transactions, there is no other decision-making other than that.

What are the developers, who are making the decisions about the network(decentralized?) doing to fix this problem?  They are adding Inscriptions and Runes to the network which is increasing the size of the block and increasing fees.

Bitcoin developers are not making any decisions about the network nor can they change anything in the existing network or blockchain. They can modify it and create new versions out of it, Bitcoin Cash is an example of that among others.

How well is the network going to work with fees at $15 to $30 US dollars per transaction?

Transaction fees are not always that high, it's just sometimes when the network gets extremely congested which makes transaction fees go higher since everyone wants to have their transactions confirmed first and miners give priority to transactions with higher fees.

Bitcoin has been turned into a centralized TradFi investment for the wealthy.  The exact opposite of what it was intended to be. It was intended to be a decentralized, peer-to-peer form of electronic cash.

It was intended to be a decentralized peer-to-peer electronic cash and it is still that, what makes you think it has changed from that other than the fact that it has become extremely popular? It still works the same way it did in the beginning, there will surely be some changes when there are more users in the network.

[Z-tight]

So then
is the whole point of Bitcoin now trading for local currency on exchange, not p2p transactions?

BTC is p2p electronic cash, whether you send it with a high or low tx fee, as long as you do not use centralized services that act as a third party in the trade, then it is a p2p tx. However, i cannot deny that spending BTC on 'cheap' goods or services is almost impossible when tx fees are high, but if you are making cross-border payments or sending a large amount in BTC, then it is great. Take note that tx fees is not always high and we used to make tx's with ~ 1 sat/vbte before ordinals spam 'attack', and if the network is no longer congested, tx fee can fall to that level.

[Skybuck]

Bitcoin fees seem to be roughly same as long ago, at least in terms of btc price.

So hodl BTC and you will be alright

Dollar/Euro hodl-ers be f#cked =)

[Iranus]

Have you tried checking bitcoin's transaction fees today and if I remember correctly the transaction fees are around 40$ per transaction?

No way, transaction fees weren't that high today, during the time I posted, it was around 6-7 dollars but just right now it's up to $20 based on average native segwit transaction of 140 sat/vByte.
$40 is also still affordable for some people. If transaction fees $100 or something like that and will stay that way for more than two weeks, I think then there will be a major decision made about Bitcoin's block size or other solutions but I think that people just move on altcoins and don't use Bitcoin for daily transactions.

Bitcoin transaction fees are even more volatile than bitcoin prices, LOL. If you only make transactions every few months or you are investing in bitcoin with capital of a few hundred thousand dollars and a few million dollars, then a fee of $40-50 is an affordable and insignificant price. But for those who only invest a few thousand USD or make many transactions every day, it is not as small as you think, even spending 4 USD per transaction is a problem for many people, not to mention higher.

There is no need to wait for bitcoin transaction fees to increase to $100 for people to switch to altcoins, many have already done this.

[Z-tight]

Bitcoin fees seem to be roughly same as long ago, at least in terms of btc price.

When is long ago? For sometime the fee rate has been low, but it seems like the spam attack has started again and the fee rate has spiked once more. As i type this, the fee rate for high priority tx's is ~ 50 sats/vbyte and there are ~ 170k unconfirmed tx's in the mempool. Finally, take note that BTC price does not determine the fee you will pay in order for your tx to be confirmed, it is your tx size and the network congestion that determines that.

[legendbtc]

Bitcoin fees seem to be roughly same as long ago, at least in terms of btc price.

When is long ago? For sometime the fee rate has been low, but it seems like the spam attack has started again and the fee rate has spiked once more. As i type this, the fee rate for high priority tx's is ~ 50 sats/vbyte and there are ~ 170k unconfirmed tx's in the mempool. Finally, take note that BTC price does not determine the fee you will pay in order for your tx to be confirmed, it is your tx size and the network congestion that determines that.

Don't blame the congested bitcoin network or rising bitcoin transaction fees on spam attacks like ORDI or more recently RUNES. Because think about it, if one day bitcoin becomes popular and is used by everyone in the world, this will also happen and be even more serious. So what we need and hope is that developers will soon have a solution to fix this before worse things happen instead of just blaming.
Bitcoin transaction fees are too high, it's true, and this makes many retail investors feel unhappy is also true, and what we need is a solution, not blame.

[SickDayIn]

Fees are typically only high when the network is congesed due to a specific event, and are not high all.of the time. It was only a few days ago that the US Government transferred $2 billion of BTC to Coinbase and paid $1.74 in fees alone. I do believe that Bitcoin will become a storage of wealth and less likely be used for daily transactions like groceries or gas. The lightning network solves that if it is required though.

[Moreno233]

Fees are typically only high when the network is congesed due to a specific event, and are not high all.of the time. It was only a few days ago that the US Government transferred $2 billion of BTC to Coinbase and paid $1.74 in fees alone. I do believe that Bitcoin will become a storage of wealth and less likely be used for daily transactions like groceries or gas. The lightning network solves that if it is required though.

High fees following network congestion is one of the major challenge I have seen in Bitcoin and it is usually refer to as scalability challenge. Unless I am not getting properly, scalability is a big problem to Bitcoin and hope something can be done to handle it. We all saw how ordinals messed up the Bitcoin network that lead to high fees, that not being the first time we are experiencing such major congestion.

I do think that the transfer of $2 billion worth of Bitcoin to Coinbase by the US government is the reason for the recent high fees because according to you, they paid as little as $1.74 as fee. There could be other reasons but one or few transactions does not seem like something that can lead to the congestion of the Bitcoin network.

[jrrsparkles]

If someone decides to hijack Bitcoin network then they have to burn few hundred thousands of dollars for every block which makes that it's not really possible in long run so attacking via network fees will just eat the money of attackers.

The excessive fees on Bitcoin network is due to the inscription of ordinals when investors think that NFT is going to moon and burning their BTC as fees.

[Litzki1990]

It is definitely a big problem for the common investor or common user when it comes to trading bitcoins with extra transaction fees. Normal users may spend a maximum of $2 to $5 on a Bitcoin transaction but a normal user will not pay $20 to $40 transaction fees for a $50 to $100 transaction. But the comfort for the users is that the transaction free is never fixed when the transaction fee is excessive then the transaction fee comes back to the normal level. If an investor needs to trade and there are additional transaction fees while doing the transaction, I would tell him that you should wait for that time and try to trade again when the transaction fee is comparatively lower.

[Rabbitqt]

Welcome to BTC this is why it will never be a replacement daily transactions.

[vino.gcs]

It is definitely a big problem for the common investor or common user when it comes to trading bitcoins with extra transaction fees. Normal users may spend a maximum of $2 to $5 on a Bitcoin transaction but a normal user will not pay $20 to $40 transaction fees for a $50 to $100 transaction. But the comfort for the users is that the transaction free is never fixed when the transaction fee is excessive then the transaction fee comes back to the normal level. If an investor needs to trade and there are additional transaction fees while doing the transaction, I would tell him that you should wait for that time and try to trade again when the transaction fee is comparatively lower.

currently the problem is that there are many ordinals transactions, apparently not to mention that they are competing for who can mine the first block of the fifth era

[microsurfer]

L2 is the only solution since they will never increase block size in btc

[Easteregg69]

L2 is the only solution since they will never increase block size in btc

Switch to "immutable" and kling on. Where's the vote?