BTC India
If today the fee to send a next block transaction is = 0.0008 ($30)
then when 1 BTC is $1 million, wouldn’t it cost like $900 ($30×27) to send a transaction? (if fee’s in sats are the same as today)
And also if BTC is $1 million then there will probably be at least 10x the demand for transactions
And so the fee in sats should also 10x (0.0008×10 = 0.008)
Therefore if BTC = $1 million it will cost like $10k to send a transaction on layer 1?
And also if the fee to send a transaction becomes 0.008 (10x todays) shouldn’t people with small amounts of BTC (less than 0.1) be very worried?
Even at 0.1 it would cost almost 10% of your stack to transfer it anywhere (including to a layer 2)
View Reddit by cbdonline – View Source
Transaction fees are based on network congestion. The more congested the more sats it will cost. I guess if adoption keeps going up then it would be reasonable to expect congestion to increase. Remember the fee you pay is essentially an auction – the more you bid for your transaction to be included in a block the more likely a miner is to process it.
And of course the value of a sat (in fiat terms) will increase as the price of Bitcoin increases.
You might pay 14 sats per vbyte. If that 10x then you are still only talking 140 sats per vbyte. Of course 140 sats in fiat terms would be worth a lot more than it is at the moment.
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I also expect economics to kick in, and for people to start using layer 2 networks. For example, if you are not transacting a huge amount and requiring additional certainty by using the native layer 1, why not use the faster cheaper lightening network?
Lets say, in fiat terms, it ends up costing 10 cents to use lightening, and $1000 to use Bitcoin layer 1 – wouldn’t you be naturally drawn to using lightening?
Fees are not based on the price of Bitcoin. They are based on how much is the other person willing to pay. Are you expecting the rest of the world to pay $900 per transaction? If yes, why all of them don’t pay $900 today already? Why not $10,000 per transaction? The user certainly can set the fees already.
Bitcoin tx fee is not proportional to bitcoin price, nor to the amount of sats being sent. No relationship whatsoever.
The number of dollars may be 900, but the actual buying power of those $900 will be much less.