Bitcoin Transaction Fees

in #bitcoin7 years ago (edited)

The current status of Bitcoin transactions is an unsustainable model. Don't get me wrong, I have long been a proponent for bitcoin, and I will always be. But transactions are becoming slower, and, more importantly, transaction fees are getting higher. As this chart shows(BTC Avg Trans Fee )the average fee is around US $3.00-and in reality much higher if you want the transaction sent very quickly (it typically takes 30-60 minutes for enough 'confirmations' at the 3.00 rate).
That's why I'm starting to see BTC as more of a transfer mechanism-like Western Union-than an actual currency replacement. You buy a cup of coffee, are you going to pay a 3.00 fee for a 1.50 cup of joe? Don't think so. On the other hand, $5.00 0r so to send a couple hundred across the world isn't too bad. So please, all you screaming people that shout bitcoin will replace money, and that it's for the poor, etc.-give it a rest, at least for now.
I am encouraged by SegWit and other proposals to increase the block size, as this will help bring prices of transactions down (or one would think so anyway). Segwit is an especially good idea, and without going into all the technical details, it saves space in blocks that is already there. (the Bitcoin core team brakes it down here: (Segwit ).

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The bitcoin value is increase in several year, so the fee transaction also rise up.

Which is a problem if someone wants to buy in at a lower total amount. I haven't gotten into the currency yet but had been wondering how much I would have to pay in fees to start a crypto-portfolio.

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