Let me just say: I’m not an expert! That data could be wrong (so point me to the right data!) I’m surprised at it being so expensive to complete a transaction. Show me better data (and hopefully tell me why it’s better?)
So, am I correct to understand that there’s a some transaction fee that’s based on the size of each transaction? So if I make a transaction for $1000 of bitcoin, it’s 1000x larger than if I make a $1 transaction?
Lantz
8588
In the spirit of adding missing context, bitcoin fees are not proportional to the amount of coins transferred. So smaller transactions cost a larger % and part of the reason why average transaction values are so high is that no one is making small ones.
It’s clearly not going to scale to a place that it’s going to replace currency. You’re not wrong about that. So any research is really just researching how people with lots of money can potentially use it to make more money.
Thanks, that’s super helpful to know. It’s fine if you’re paying someone to say unlock your oil pipeline, but not so good for a cup of coffee.
Right, or if you’re buying a thousand dollars worth of mexican black tar heroin on the dark web and you don’t mind paying twenty bucks extra to keep yourself more anonymous.
I felt that presenting just the fee (numerator), without the value of the total transaction (denominator), is cherry picking. If the concern is high fees, talk about the percentage of the total.
For credit cards it is 1.3-3.5%. Average Credit Card Processing Fees and Costs in 2021 | The Ascent
In my experience one can also bid a lower fee for Bitcoin transaction clearing, including something near zero - but you will wait days. You can bid above the current average to have instantaneous, but at the averages these number show the fees still would at most be comparable to lower end credit card fees.
If the average transaction size is equivalent to two hundred fifty thousand American dollars, what exactly does that prove?
What does an average transaction cost of $62, without any other context, prove to you? How do you assess that to be too much, or too little? If I told you I had a credit card transaction with a $62 merchant surcharge, would that be too much or too little?
Other examples: if someone complains to you that they paid $100k in income taxes, do you instantly agree that’s too much, or ask for (or at least consider) that their total income may be useful information? What if I told you more people died yesterday in NYC than Eugene Oregon, NYC must be much more deadly to live in? Or that I paid $300 for a GPU (but I omit the model) - did I get a good or bad deal? Do those absolute numbers tell you anything useful?
The point is that there is useful context omitted by giving only a single number, which by itself doesn’t tell you much.
Aceris
8595
To keep up the fruit metaphor, I’m not sure responding to cherry picking with an apples to oranges comparison is helpiong anyone.
Even a stock deal can be made for a much much smaller flat fee than a bitcoin txn
Well, I know for a fact that international bank transactions at those levels is more costly and time consuming than using Bitcoin. That’s the only real utility I’ve used Bitcoin for, and it fulfilled that incredibly well.
Transaction costs don’t scale with transaction size. So if it’s $62, it’s $62 if you’re buying a $17 pizza.
Like Stusser says, transaction fees don’t change based on the size of the transaction, they only scale based on how quickly you want your transaction to be processed. A limited number of transactions can occur with each “block”, and so your fee is an incentive to process your transaction over someone else’s.
So people were literally paying $50 to transfer $1 of eth yesterday
On larger exchanges you pay a simple percent fee. E.g. starting at 0.25% and declining with volume on Gemini.
https://www.gemini.com/fees/activetrader-fee-schedule
I wonder how that works out? Do they combine multiple transactions to a single block to confirm?
Yes, the big exchanges act as custodians and are trading coins amongst their members.
The same is true for someone that is trading stock shares on a Fidelity account - the broker/exchange remains the custodian, which is how they’ve also reduced or eliminated fees.
For example, one trade by a user on Gemini might be broken into multiple smaller trades, or merged into one mega trade, as the exchange figures out the fastest and most cost efficient matching within their user base and only later off their user base if necessary.
Sure but that’s only relevant for intra-exchange transfers, which is only related to market traders. IF I want to pay for a burger king burger with Eth I would have had to pay the $62 fee for my $5 meal yesterday.
I don’t think I’ve suggested you or anyone use crypto currency for a fast food purchase. As the systems work now, it’d be like using an international bank transfer to do so. Or paying with with a transfer of fractional stock shares.
The last few posts probably belong in another thread. Back to focusing on why GPUs should be applied to something useful, like pretend shooting imaginary demons with better shadows than last year. rolls eyes
In a gaming forum, you are saying that the intended use of a GPU is stupid?
That all makes sense.
Regarding buying pizzas, it’s not much of a currency if it’s primarily used by speculators and junkies buying drugs.
