Post
Topic
Board Bitcoin Discussion
Re: Will bitcoin transaction fees be too high in the future?
by
Abiky
on 17/09/2020, 18:07:40 UTC
This is the chart of Bitcoin's Avg. Transaction fee: https://bitinfocharts.com/comparison/bitcoin-transactionfees.html

Right now the median fee is about $2. After lots of halvings the reward won't be enough to satisfy the miners. I guess that after a decade, bitcoin will be more widespread, as a result, more transactions will occur every second. Won't this increase the median fee? If it does, bitcoin will start being a not-so medium of exchange. Imagine paying $5 for a transaction. Even paypal doesn't charge that much.

With high network congestion (many people using Bitcoin) you'll expect high fees on the Blockchain. It's something inevitable due to Bitcoin's limited transaction capacity. A quick solution to this would be increasing the block size. But even that would undermine Bitcoin's level of decentralization. That's why developers have taken the approach of scaling Bitcoin in an "off-chain" manner. The Lightning Network aims to bring instant payments at a fraction of the cost. It's hoped that people use this solution in the future as fees become higher on the Blockchain. Only those willing to send money across borders in the safest way possible will perform transactions on the main Bitcoin blockchain. The rest will be using the LN for daily payments.

Despite Bitcoin's high fees, there's always the choice of sending Bitcoins with the lowest fee possible. It's much cheaper this way, but extremely slow to process. It could take hours or even a day for your Bitcoin transaction to go through. As long as Bitcoin remains decentralized, nothing else matters. When you pay a high fee, you're paying a premium to keep your transaction extremely secure against external manipulation. In other words, you get what you pay for (which is decentralization and censorship resistance). Cryptocurrencies that have extremely low fees are very insecure, making them an unreliable payment system. That's why it costs a lot to transact on the Bitcoin blockchain, as it's the most secure cryptocurrency in the world today. Since scaling Bitcoin is not necessary for it to work as intended (as decentralization is what really matters), people can use other cryptocurrencies if they feel that fees on the BTC blockchain are too high. It's a matter of a person's preferences over anything else. With the Lightning Network already in motion, it's expected that Bitcoin would reach the level of PayPal and VISA in the future. If that happens, Bitcoin would win the war against the traditional monetary system of today. Just my thoughts Grin