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I have never bought btc, there is a fee? This is a function the wallet provides? Who gets the fee? I have bought dogecoins as a joke, and I have a wallet for

by biturd 11y ago

I have never bought btc, there is a fee? This is a function the wallet provides? Who gets the fee? I have bought dogecoins as a joke, and I have a wallet for that, which I send a few coins here and there to others, which cost me nothing. Not quite following what I thought was the basic principles of how this works now.

blhack 11y ago
There is a fee, it goes to the person who processes your transaction (a bitcoin "miner"). Dogecoin has the same thing. It was likely not free for you to send those coins (unless it was an off-chain transfer via a hosted wallet [think transferring money between checking accounts at USBANK])
ryanlol 11y ago
The fee is optional and currently just make your transactions get processed faster. Although, a hostile party would be able to stop transactions without fees from being processed simply by flooding them.
tylersmith 11y ago
Fees are in most cryptocurrencies. They go the miner that finds that block which includes your transaction. The miner gets a standard block reward (currently 25btc) plus the fees from all transactions included in that block. The idea is that in the long term as the block reward tends toward 0, the value of bitcoins rise and a tiny fee from each transaction compensates the miners as much or more than the current block reward does which will continue to incentivize them to be honest. Currently, fees are essentially an anti-spam measure to keep people from creating millions of transactions with the same coin and DDoSing other transactions. I.e. without fees a single person could be issuing more transactions than this stress test did, for free, non-stop.
davidgerard 11y ago
The original idea was that as mining rewards are reduced with time, miners will get their fees from transactions instead.
kristianp 11y ago
http://bitzuma.com/posts/making-sense-of-bitcoin-transaction-fees/ http://bitzuma.com/posts/making-sense-of-bitcoin-transaction...

by biturd 11y ago

blhack 11y ago

There is a fee, it goes to the person who processes your transaction (a bitcoin "miner"). Dogecoin has the same thing. It was likely not free for you to send those coins (unless it was an off-chain transfer via a hosted wallet [think transferring money between checking accounts at USBANK])

ryanlol 11y ago

The fee is optional and currently just make your transactions get processed faster. Although, a hostile party would be able to stop transactions without fees from being processed simply by flooding them.

tylersmith 11y ago

Fees are in most cryptocurrencies. They go the miner that finds that block which includes your transaction. The miner gets a standard block reward (currently 25btc) plus the fees from all transactions included in that block. The idea is that in the long term as the block reward tends toward 0, the value of bitcoins rise and a tiny fee from each transaction compensates the miners as much or more than the current block reward does which will continue to incentivize them to be honest. Currently, fees are essentially an anti-spam measure to keep people from creating millions of transactions with the same coin and DDoSing other transactions. I.e. without fees a single person could be issuing more transactions than this stress test did, for free, non-stop.

davidgerard 11y ago

The original idea was that as mining rewards are reduced with time, miners will get their fees from transactions instead.

kristianp 11y ago

http://bitzuma.com/posts/making-sense-of-bitcoin-transaction-fees/ http://bitzuma.com/posts/making-sense-of-bitcoin-transaction...