[2014-07-10] New Study: Low Bitcoin Transaction Fees Unsustainable

[epere]

http://www.coindesk.com/new-study-low-bitcoin-transaction-fees-unsustainable/

Transaction fees have come to the fore again after core developer Gavin Andresen indicated that the next bitcoin core update would feature a new way to determine fees.

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[CoinMode]

http://www.coindesk.com/new-study-low-bitcoin-transaction-fees-unsustainable/

Transaction fees have come to the fore again after core developer Gavin Andresen indicated that the next bitcoin core update would feature a new way to determine fees.

I agree that fees should have a scale, but to argue that they need to be universally raised is ridiculous. There will be many years of adoption taking place while the block reward is still very high, and after the value halves a few more times, nearly everybody on Earth who uses money will be doing so with bitcoins. The only way that miners won't get rewarded enough is if people lose interest in the network entirely, and at that point it doesn't matter what mechanism crushes bitcoin.

[dwdoc]

It has been long known that eventually transaction fees will not cover the cost of maintaining bitcoin network security.  Ironically some have suggested that governments may end up having to take over network operations.  

http://bitcoin.stackexchange.com/questions/876/how-much-will-transaction-fees-eventually-be

[bitbouillion]

Increasing transaction volume means more fees per block, so the miner reward will go up with volume. The number of transactions per block barely matter for the computational effort. The more transactions, the more efficient the signing of transactions becomes. The increasing volume should overcompensate for the declining block reward. On the long term transactions fees should go down.

[theonewhowaskazu]

I think this is bollocks. Obviously 99.99% of the cost for miners comes with calculating the hash not actually publishing the block from the transactions. Therefore more transactions on the block chain -> lower TX fees because each txn dilutes the share each individual TXN needs to pay to finance the miners.

[Ron~Popeil]

TX fees will increase in value as bit coin increases in value as well. That and increased volume will resolve most of the issues. This really shouldn't come up until he block reward halves again.

[Swordsoffreedom]

This is bollocks doesn't include new developments in the field
Sidechains merge mining for namecoins + Future sidechains etc.
Were not building a paypal with high fees ...

[ThomasCrowne]

This is bollocks doesn't include new developments in the field
Sidechains merge mining for namecoins + Future sidechains etc.
Were not building a paypal with high fees ...

amen to that! 

[Bit_Happy]

We need radically lower fees on the small transaction end for micro-payments to work.
This will also reduce competition from the top alt coins.