I just saw that the transaction fee for bitcoin is really dropped when compared with the earlier few months.
I just wanted to know what affects the bitcoin transaction fee, what makes the fee high or low? Does the demand increase the fee too or when bitcoins price is volatile and keeps increasing or decreasing real fast, does that affect the transaction fee? Does the amount being sent decide the fee?
If not then please state the factors affecting transaction fee!
This is the simplest reason why bitcoin transaction fee is low or high .Firstly, transaction fees goe the minners who are minning the blocks that includes your transactions.Remember, that the fee is based on the size (in bytes) of the transaction and the time of its inputs (that is ,the periods the coins spent were received) in the blocks. Moreover, transactions get big if they have to "pull in" a lot of outputs from previous transactions and that raises the fee. So if you got a lot of small payments and then try to make a large payment, the transaction will be expensive because it needs to gather all those small payments.