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I have a question as a relatively uninformed spectator: where do these transaction fees go and why do they have to be so high?
by debaserab2 9y ago
I have a question as a relatively uninformed spectator: where do these transaction fees go and why do they have to be so high?
- rlanday 9y agoA miner that successfully mines a block collects all the transaction fees for transactions in the block. They are high right now because many people want to send transactions, but blocks are capped at 1 MB, limiting the number of transactions that can fit into one block. Blocks are produced approximately once every ten minutes, so a transaction that contains a fee that’s too low will constantly get passed over in favor of higher-fee transactions.
- deleted 9y ago[deleted]
- fortythirteen 9y ago> where do these transaction fees go and why do they have to be so high? They go to the miners who verify transactions. They're high because of the combination of the overall ridiculous price of bitcoin (since the miner gets paid in bitcoin) and the amount of computing power required to successfully mine. The latter means that miners are only willing to verify if the return over time will turn them a profit on the cost of hardware.