bitcoin wallet fee

[btckold24]

I haven't traded any btc in around a year but just decided to buy 2 s3 miners with btc. I was consolidating my btc from wallet to wallet and the seems to be .005 which stinks because I have 5 wallets and some only have .01 on them so sending the .01 they are going to charge me .005? has the fee always been this bad or did I just not notice last year when making more before difficulty went up.

thx for the help
kold

if this isn't normal any help on any wallets settings or a better wallet to use would be appreciated.

 its the bitcoin-qt wallet.

[bitsmichel]

You can change the fees in some clients.  0.005 BTC is very high fee, 0.0001 fee is normal.. something is wrong with the wallet configuration I think

[oceans]

Yes it does seem like there may be something wrong with the wallet configuration as that fee does seem too high. As stated the normal is around 0.0001 so I would definitely look into why yours seems to be so high.

[micky123]

I haven't traded any btc in around a year but just decided to buy 2 s3 miners with btc. I was consolidating my btc from wallet to wallet and the seems to be .005 which stinks because I have 5 wallets and some only have .01 on them so sending the .01 they are going to charge me .005? has the fee always been this bad or did I just not notice last year when making more before difficulty went up.

thx for the help
kold

if this isn't normal any help on any wallets settings or a better wallet to use would be appreciated.

 its the bitcoin-qt wallet.

Are you using a desktop wallet? Seems to be that way, if so, you can look for Settings-> Options -> Then set the transaction fee there. Please note that the transaction fee is per KB, so set it to as low as possible. Not advisable to set it to 0 as the transaction can take over a day to confirm. Hope that helps!

[Jamie_Boulder]

That's way to high, double check the configuration and if not send a support request.

[btckold24]

yes its a desktop wallet - I set the settings and tried to do a .003 transaction and it still tried to charge .005  even after I put the transaction fee to 0.0001 - could this be because my wallet hasnt sync'd in a very long time and is catching up now?


Also what is the best wallet for desktop with lowest fee's you guys recomend?

thx so much

[micky123]

yes its a desktop wallet - I set the settings and tried to do a .003 transaction and it still tried to charge .005  even after I put the transaction fee to 0.0001 - could this be because my wallet hasnt sync'd in a very long time and is catching up now?


Also what is the best wallet for desktop with lowest fee's you guys recomend?

thx so much

Unfortunately, i got locked out of my multibit wallet even though i think i remember the password correctly. IIRC, when trying to transact on multibit, i was also charged around 0.004. Just dumped the wallet even though it does have a few satoshi in then. Went ahead and got myself a blockchain online wallet and happy so far. I have 2 FA enabled and the best part is that i can carry my phone anywhere i go and make BTC payments or transfer BTC to anyone i like on the go!

Also got a Xapo wallet for myself and that's going good as well.

[Bitsaurus]

Unfortunately if you have a lot of dust (very small payments like 300 Satoshi) then your transaction will be quite bulky and incur a large fee.  This is another reason why faucets are a waste of time.

[giveBTCpls]

There is a thread where a guy got charged 0.1 fee for some reason. I always check my fee i set to the default value. I have never used higher fees unless the situation requires it like rushing to get money quick in an exchange and whatnot.

[micky123]

There is a thread where a guy got charged 0.1 fee for some reason. I always check my fee i set to the default value. I have never used higher fees unless the situation requires it like rushing to get money quick in an exchange and whatnot.

Hi,

This is true. I have read of it too. I just opened my multibit wallet to see if i can find the fee settings (even though its locked) and i do see that i can enter the value to transfer and the fee is 0.004. I guess this appears to be the standard fee as setup by multibit. I feel i am better off using blockchain, but again security is a concern. Maybe i should get myself one of those hardware wallets from trezor.

[cryptworld]

If you use electrum you can set your own fees

[micky123]

If you use electrum you can set your own fees

For that matter, you can set your own fees on pretty much any wallet available these days. OP downloaded a multibit wallet back in the day and despite setting the fees manually, it still defaults right back to 0.005. I have the same issue with my multibit wallet too. I guess those wallets used to be problematic. Hence i have an online blockchain wallet now.

[DannyHamilton]

The fee is 0.0001 BTC per kilobyte.

If your wallet is filled with MANY extremely small value transactions received, then each of those adds nearly 200 bytes to the transaction when you try to spend them.  This means that if your wallet received 250 transactions of extremely small value such that the sum of all 250 transactions gives your wallet a balance of 0.01 BTC., then it will require nearly:

250 X 200 = 50,000 bytes = 50 kilobytes X 0.0001 BTC per kilobyte = 0.005 BTC in fees to send the transaction.

If you are running the latest version of Bitcoin Core (bitcoin-qt), then you can use the coin control feature to specifically choose which outputs will be used to fund the transaction.  That way you can control the transaction size, and therefore the fee.

If you have a lot of time, a lot of patience, and receive a single large value transaction (at least 0.03 BTC, but the larger the better), then you can slowly consolidate the dust in your wallet to save on fees.  Depending on how much dust you have, this may take anywhere from days to years.

[micky123]

The fee is 0.0001 BTC per kilobyte.

If your wallet is filled with MANY extremely small value transactions received, then each of those adds nearly 200 bytes to the transaction when you try to spend them.  This means that if your wallet received 250 transactions of extremely small value such that the sum of all 250 transactions gives your wallet a balance of 0.01 BTC., then it will require nearly:

250 X 200 = 50,000 bytes = 50 kilobytes X 0.0001 BTC per kilobyte = 0.005 BTC in fees to send the transaction.

If you are running the latest version of Bitcoin Core (bitcoin-qt), then you can use the coin control feature to specifically choose which outputs will be used to fund the transaction.  That way you can control the transaction size, and therefore the fee.

If you have a lot of time, a lot of patience, and receive a single large value transaction (at least 0.03 BTC, but the larger the better), then you can slowly consolidate the dust in your wallet to save on fees.  Depending on how much dust you have, this may take anywhere from days to years.

Wow! now that's a super explanation of how the fee is calculated. Just a little question from my side, without hijacking this thread, does this mean that as the BTC network grows we will face higher transaction fees? Am i right in assuming this?

[DannyHamilton]

The fee is 0.0001 BTC per kilobyte.

If your wallet is filled with MANY extremely small value transactions received, then each of those adds nearly 200 bytes to the transaction when you try to spend them.  This means that if your wallet received 250 transactions of extremely small value such that the sum of all 250 transactions gives your wallet a balance of 0.01 BTC., then it will require nearly:

250 X 200 = 50,000 bytes = 50 kilobytes X 0.0001 BTC per kilobyte = 0.005 BTC in fees to send the transaction.

If you are running the latest version of Bitcoin Core (bitcoin-qt), then you can use the coin control feature to specifically choose which outputs will be used to fund the transaction.  That way you can control the transaction size, and therefore the fee.

If you have a lot of time, a lot of patience, and receive a single large value transaction (at least 0.03 BTC, but the larger the better), then you can slowly consolidate the dust in your wallet to save on fees.  Depending on how much dust you have, this may take anywhere from days to years.

Wow! now that's a super explanation of how the fee is calculated. Just a little question from my side, without hijacking this thread, does this mean that as the BTC network grows we will face higher transaction fees? Am i right in assuming this?

Not necessarily.

The wallet typically combines a few previously received outputs into a single new output when you send a transaction.  Therefore, pieces of bitcoins are constantly being recombined into larger values. It's generally only a problem for people that try to get bitcoins from "faucets" that pay extremely small amounts very frequently.

The fee could go down in the future (it has gone down multiple time in the past), or it could go up in the future as the block subsidy shrinks.  It is difficult to predict exactly what will happen with transaction fees in the future.

[micky123]

The fee is 0.0001 BTC per kilobyte.

If your wallet is filled with MANY extremely small value transactions received, then each of those adds nearly 200 bytes to the transaction when you try to spend them.  This means that if your wallet received 250 transactions of extremely small value such that the sum of all 250 transactions gives your wallet a balance of 0.01 BTC., then it will require nearly:

250 X 200 = 50,000 bytes = 50 kilobytes X 0.0001 BTC per kilobyte = 0.005 BTC in fees to send the transaction.

If you are running the latest version of Bitcoin Core (bitcoin-qt), then you can use the coin control feature to specifically choose which outputs will be used to fund the transaction.  That way you can control the transaction size, and therefore the fee.

If you have a lot of time, a lot of patience, and receive a single large value transaction (at least 0.03 BTC, but the larger the better), then you can slowly consolidate the dust in your wallet to save on fees.  Depending on how much dust you have, this may take anywhere from days to years.

Wow! now that's a super explanation of how the fee is calculated. Just a little question from my side, without hijacking this thread, does this mean that as the BTC network grows we will face higher transaction fees? Am i right in assuming this?

Not necessarily.

The wallet typically combines a few previously received outputs into a single new output when you send a transaction.  Therefore, pieces of bitcoins are constantly being recombined into larger values. It's generally only a problem for people that try to get bitcoins from "faucets" that pay extremely small amounts very frequently.

The fee could go down in the future (it has gone down multiple time in the past), or it could go up in the future as the block subsidy shrinks.  It is difficult to predict exactly what will happen with transaction fees in the future.

Thank you for answering that! I was beginning to worry that the primary benefit of lower cost per financial transaction of BTC was under siege  . Was reading up on the Dell BTC sale worth $50K and saw a twitter post congratulating Dell on saving a $1000 on transaction fees.  Just goes to show how much money our banks and financial rogues make off us. I still cant believe that BTC adoption is still in its nascent stages inspite of the clear savings on transaction fees that is there for everyone to see. I guess vested interests (read: Banks and financial institutions) are not allowing BTC to settle down and are projecting the volatility of BTC. Hell, i am sure they have a hand in orchestrating the whole thing just so people don't use BTC as it looks to be unstable!

[williamj2543]

I usually put my fee at 0.0002, because the majority of people use 0.0001 and that little extra will help a lot in confirming faster. 0.0001 is a good minimum.

[DannyHamilton]

Thank you for answering that! I was beginning to worry that the primary benefit of lower cost per financial transaction of BTC was under siege  . Was reading up on the Dell BTC sale worth $50K and saw a twitter post congratulating Dell on saving a $1000 on transaction fees.  Just goes to show how much money our banks and financial rogues make off us. I still cant believe that BTC adoption is still in its nascent stages inspite of the clear savings on transaction fees that is there for everyone to see. I guess vested interests (read: Banks and financial institutions) are not allowing BTC to settle down and are projecting the volatility of BTC. Hell, i am sure they have a hand in orchestrating the whole thing just so people don't use BTC as it looks to be unstable!

Note that there is a hidden "fee" called "inflation" that has allowed transaction fees to remain small during the bootstrapping phase of bitcoin.

Every year (acutally every 10 minutes or so) that "fee" is slowly whittled away.

At the moment, inflation is used to pay miners a block subsidy of 25 BTC for every block.  That's more than 1.3 million bitcoins in a year.  With the current volume of bitcoins in existence at approximately 13 million, that means that inflation right now is eating away at the value of your bitcoins at an annualized rate of 10% and handing that value over to the miners to maintain the system.

As long as demand keeps up with (or surpasses) this inflation, it remains hidden. Essentially the value of your bitcoins is growing at an annualized rate right now that is 10% less than it would be if the miners weren't being paid with inflation.

Eventually the block subsidy will dwindle, and the miners will need to be compensated for securing the network.  This can either come from increased transaction volume, or increased fees per transaction.  My guess it that it might come from a little bit of both.

[micky123]

Thank you for answering that! I was beginning to worry that the primary benefit of lower cost per financial transaction of BTC was under siege  . Was reading up on the Dell BTC sale worth $50K and saw a twitter post congratulating Dell on saving a $1000 on transaction fees.  Just goes to show how much money our banks and financial rogues make off us. I still cant believe that BTC adoption is still in its nascent stages inspite of the clear savings on transaction fees that is there for everyone to see. I guess vested interests (read: Banks and financial institutions) are not allowing BTC to settle down and are projecting the volatility of BTC. Hell, i am sure they have a hand in orchestrating the whole thing just so people don't use BTC as it looks to be unstable!

Note that there is a hidden "fee" called "inflation" that has allowed transaction fees to remain small during the bootstrapping phase of bitcoin.

Every year (acutally every 10 minutes or so) that "fee" is slowly whittled away.

At the moment, inflation is used to pay miners a block subsidy of 25 BTC for every block.  That's more than 1.3 million bitcoins in a year.  With the current volume of bitcoins in existence at approximately 13 million, that means that inflation right now is eating away at the value of your bitcoins at an annualized rate of 10% and handing that value over to the miners to maintain the system.

As long as demand keeps up with (or surpasses) this inflation, it remains hidden. Essentially the value of your bitcoins is growing at an annualized rate right now that is 10% less than it would be if the miners weren't being paid with inflation.

Eventually the block subsidy will dwindle, and the miners will need to be compensated for securing the network.  This can either come from increased transaction volume, or increased fees per transaction.  My guess it that it might come from a little bit of both.

Wow! That just went way over my head. I guess its time to get to bed! Will come back and read this post tomorrow as it seems to be interesting. My parting shot: No matter how high the transaction fee rises, i could never imagine the fee rising to the same level as FIAT. The $1000 saving was a real shocker to me and i cant wait to see how much more people can save on transaction costs, thereby bringing the cost of services and goods down.