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>a Bitcoin transaction still averages about $10 per transaction. How does this make it not low cost? Transferring that $10 still only costs $.02 >capped in th

>a Bitcoin transaction still averages about $10 per transaction. How does this make it not low cost? Transferring that $10 still only costs $.02 >capped in theory to 7 transactions per second Not 7 transactions but 7 settlements per second, which clear in under 60 minutes. You can have as many binding transactions per second as you want off the chain.

inoop 12y ago
> How does this make it not low cost? Transferring that $10 still only costs $.02 Assuming max TPS rate of 3tps, a 10-minute block will contain 3 * 60 * 10 = 1800 transactions. Each block generates 25btc, which is equivalent $6125 at the current $245 price. Each transaction therefore costs $6125 / 1800 = $3.40. Of this only a small amount is paid for the by the person who creates the transaction, the rest of paid for by those who hold Bitcoin.
- mpyne 12y ago
  > Of this only a small amount is paid for the by the person who creates the transaction, the rest of paid for by those who hold Bitcoin. I always find it ironic that the illusion of low fees per transaction in Bitcoin is subsidized by the ongoing inflation of the money supply. Apparently inflation is acceptable when it helps evangelize the product you're trying to sell, but it's not acceptable monetary policy in any other situation.
mpyne 12y ago
> Not 7 transactions but 7 settlements per second, which clear in under 60 minutes. You can have as many binding transactions per second as you want off the chain. If you're willing to engage in transactions off-chain then you might as well use PayPal or other fiat. The blockchain and the protocol surrounding its maintenance is central to Bitcoin and its philosophy, it's not merely some 'nice-to-have' feature that should be jettisoned as soon as it becomes inconvenient. After all, the blockchain is the one and only authoritative Bitcoin ledger, everything else in Bitcoin is an IOU, no matter how sensible it might seem, which is why Bitcoin itself will reject a transaction if it's not included into a mined block in time. And either way, way to ignore the in-practice 2-3 transaction per second limit.

inoop 12y ago

> How does this make it not low cost? Transferring that $10 still only costs $.02 Assuming max TPS rate of 3tps, a 10-minute block will contain 3 * 60 * 10 = 1800 transactions. Each block generates 25btc, which is equivalent $6125 at the current $245 price. Each transaction therefore costs $6125 / 1800 = $3.40. Of this only a small amount is paid for the by the person who creates the transaction, the rest of paid for by those who hold Bitcoin.

mpyne 12y ago
> Of this only a small amount is paid for the by the person who creates the transaction, the rest of paid for by those who hold Bitcoin. I always find it ironic that the illusion of low fees per transaction in Bitcoin is subsidized by the ongoing inflation of the money supply. Apparently inflation is acceptable when it helps evangelize the product you're trying to sell, but it's not acceptable monetary policy in any other situation.

mpyne 12y ago

> Not 7 transactions but 7 settlements per second, which clear in under 60 minutes. You can have as many binding transactions per second as you want off the chain. If you're willing to engage in transactions off-chain then you might as well use PayPal or other fiat. The blockchain and the protocol surrounding its maintenance is central to Bitcoin and its philosophy, it's not merely some 'nice-to-have' feature that should be jettisoned as soon as it becomes inconvenient. After all, the blockchain is the one and only authoritative Bitcoin ledger, everything else in Bitcoin is an IOU, no matter how sensible it might seem, which is why Bitcoin itself will reject a transaction if it's not included into a mined block in time. And either way, way to ignore the in-practice 2-3 transaction per second limit.