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I've seen this mentioned before, but what I don't know(and am genuinely asking) is, aren't the transfer fees for bitcoin really high? like, 23 bitcoin? What h
by Andaith 5y ago
I've seen this mentioned before, but what I don't know(and am genuinely asking) is, aren't the transfer fees for bitcoin really high? like, 23 bitcoin? What happens when the transfer fees are orders of magnitude more than the value being transferred?
- hervature 5y agoWhat if it cost you $100 to buy bananas worth $1? You’d trade using something else.
- gruez 5y ago> What happens when the transfer fees are orders of magnitude more than the value being transferred? you're missing the demand curve. As fees increase, transaction volumes go down, until there's an equilibrium. The opposite occurs as well: if transaction volume dries up, the demand for block space will decrease and eventually the fees will drop.
- mijamo 5y agoAnd you are forgetting the whole "securing bitcoin" part. If bitcoin was to be the dominant currency, it needs a lot of mining to secure the network, otherwise attacks would be very appealing. But a lot of mining means a high transaction fee.
- anonporridge 5y agoNo. Fees are currently about 10% of total block reward, https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.html https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.h...