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Transaction fees

As we all know transaction fees have been pretty high in recent times, at the same time hash rates have been at all time highs. Shouldn’t high hash rates translate to lower fees? What needs to happen to get bitcoin fees lower? What do people think the long term trend for fees will be?



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3 Comments

  1. >Shouldn’t high hash rates translate to lower fees?

    No, a higher hash rate does not translate to lower fees.

    >What needs to happen to get bitcoin fees lower?

    For fees to be lower, there needs to be less demand for the limited bitcoin block space. That’s all there is to it.

    >What do people think the long term trend for fees will be?

    If there continues to be more demand for the limited bitcoin block space and some bitcoin users are willing to pay higher fees, then fees will increase. If demand for the limited bitcoin block space decreases, then fees will decrease.

    Bitcoin users that want lower fees should start using the lightning network.

  2. The higher hash-rate means higher security, it doesn’t mean faster transactions.

    Transactionsa are packed into blocks, each block has roughly 2mb of space. The fee is effectively an auction for space in the next block.

    If blocks get full then people will bid more for space. The long term trend for fees is that they will increase.

  3. You need to learn a bit more about bitcoin.

    Hashrate == security and most of the time descentralization too aka harder to perform attacks on bitcoin.

    If you measure fees in fiat then yes, they will likely go up and up and up in time. If you measure fees in bitcoin (you should) they will go up and down its cyclical.

Are timelocks a bad idea when it comes to wrench attack protection?

Bitcoin is what economists call “Perfectly Price Inelastic Supply”, meaning ANY increase in price will not create more supply (21m Bitcoin is fixedno matter $10m or $100m per coin)

Bitcoin is what economists call “Perfectly Price Inelastic Supply”, meaning ANY increase in price will not create more supply (21m Bitcoin is fixedno matter $10m or $100m per coin)