Then how does Bittrex have zero issues with confirmations (most it took for first confirmation was half an hour) with only 0.0001 fee?
Regardless of cents or whatnot, I do 0.002-0.003BTC withdrawals for renting on betarigs.com, so a 0.001 fee would be a BIG chunk of that.
Why are you using an exchange as a wallet? We're not a coin storage system. Using an exchange as a coin storage system or a wallet is a horrifically bad idea. We will NEVER make a change that ENCOURAGES people to store their coins with us long term and use us as a wallet. Use a wallet service if you want a wallet. You use an exchange if you want to trade coins. Paying services from your exchange wallet is... it blows my mind.
And I cannot comment on how or what Bittrex does. Thirty minutes for first confirmation is, in my opinion, 22 minutes too long, given BTC's tendency to run on 8 minute blocktimes before a difficulty change. If you're trading in a fast market and trying to take advantage of arbitrage between different exchanges, 30 minutes may as well be four hours. We are built for speed and efficiency in trading coins.
Not being used as a wallet to make payments.