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Furthermore, tons of "exchanges" in Korea were spamming the mempool with 0-fee transactions, as were some other notorious figures, driving these relatively fals
by icelancer 9y ago
Furthermore, tons of "exchanges" in Korea were spamming the mempool with 0-fee transactions, as were some other notorious figures, driving these relatively false mempool statistics way up in order drive up the value of other coins.
- oh_sigh 9y agoWhat benefit do they get from spamming the exchanges? Is there ever an reason to mine 0-fee transactions?
- icelancer 9y agoTo get threads like this created about how the mempool is packed and it costs $20 to move BTC from peer-to-peer and to drive media in that direction. For what second-order reason would someone do this? Well, I can think of a few....
- xocyabencl 9y agoHow can a bunch of no fee transaction attempts cause a $20 market price? It seems like the block would need to be full of transactions with high fees.
- rocqua 9y agoBy increasing the size of the backlog, you make it seem like high transaction fees will stick around longer. It also exaggerates the immediate issue of bitcoins low transaction rate.
- qsucvatz 9y agoBecause Bitcoin used to work, and now it doesn't. Bitcoin Cash scales appropriately.
- xorcist 9y agoSome miners are likely paid outside the blockchain to pick up certain transactions. It is clear that at least one miner do it systematically but I don't think they have ever divulged who their client is and why they do it.
- ncallaway 9y agoI don't know the answer to the first question. The second question (Is there ever an reason to mine 0-fee transactions?) is "yes, for a while". Until approximately 2040 new Bitcoin are introduced into the system as a reward to the miner who discovers a block. So, even if a miner mines a block with only 0-fee transactions, they are still rewarded with a small amount of Bitcoin "from nowhere". Bitcoin will be introduced in this manner until there are 21 million BTC in existence, at which point they will stop being introduced "from nowhere". This is expected to take until about 2040 (though I don't know how that projection is made). After that point there won't be much of an incentive to mine 0-fee transactions.
- tlrobinson 9y ago> So, even if a miner mines a block with only 0-fee transactions, they are still rewarded with a small amount of Bitcoin "from nowhere". Sure, but as long as there are transactions with fees in the mempool, then mining 0-fee transactions has an opportunity cost. Currently that's about 5 BTC per block, compared to the 12.5 BTC reward (https://www.smartbit.com.au/charts/transaction-fees-per-block https://www.smartbit.com.au/charts/transaction-fees-per-bloc...). It's possible that forgoing the transaction fees will make mining for you unprofitable if margins are thin. Also, larger blocks are more likely to be orphaned, so including 0-transaction fees increases that risk (very slightly) with no additional reward (though currently the orphan rate appears to be basically zero, even with full blocks)
- umanwizard 9y agoBut why include those transactions in the block at all? It’s perfectly valid to mine a block containing no transactions other than the block reward.
- yincrash 9y agoDifficulty of mining is adjusted every 2016 blocks to maintain a rate of one block per 10 minutes, so since the rate of block generation is set, and the reward shrinking rate is also set, you can predict when all bitcoin have been mined.
- Buge 9y agoWhat benefit do people get from DDOS? Some men just want to watch the world burn. Also you could short a currency, attack it, then profit.
- qsucvatz 9y ago0 fee txns don't cause high fees. They are dropped from the mempool as needed.