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The $5 transaction fee creates a floor for transactions. If other processors charge a 2% fee, then it doesn't make sense to use Bitcoin to transfer funds or use
by stephengillie 9y ago
The $5 transaction fee creates a floor for transactions. If other processors charge a 2% fee, then it doesn't make sense to use Bitcoin to transfer funds or use for purchases lower than $25. This already blocks a huge array of daily transactions, including a $20 ATM withdrawal and probably lunch.
Additionally, there is a floor to the fractionality of Bitcoin, of 100 000 000 Satoshi. If Bitcoin ever reaches $1,000,000, then it could only be divided into $0.01 denominations, and not further. If it reaches $2,000,000, then 1 Satoshi would be worth 2 cents.
- alphydan 9y ago> The $5 transaction fee There is no such thing unless you are in a hurry.
- MSM 9y agoTrue, but for most reasonable purchases, time is of some sensitivity. Even using his previous examples, withdrawing $20 or buying lunch, you can't wait hours or days- you usually want them immediately.
- wil421 9y agoArugueably I'm in a hurry anytime I do a monetary transaction. Except my check to the landlord, he's never in a hurry for me.
- slededit 9y agoConsidering most bank transactions take days to settle you probably have more time than you think.
- stephengillie 9y agoBank holidays really put the "automated" in Automated Clearing House. Robots are going to take your job, but not on President's Day, Columbus Day, Labor Day, or Memorial Day.
- Latty 9y agoNo one wants to wait for a transaction. "Let me wait 5m for my ATM to give me my money."
- darpa_escapee 9y ago> There is no such thing unless you are in a hurry. I think this is easy to say because we don't have to wait hours every time we use cash or our debit or credit cards. It's reminiscent of using checks for everything. Businesses would have to factor in the possibility of checks bouncing or Bitcoin transactions being rejected after the POS transaction.