Post
Topic
Board Development & Technical Discussion
Re: Why do some people pay illogically high fees for transactions?
by
Neodice
on 06/05/2023, 19:46:05 UTC
Apart from that, it will lower the profit for miners too if I understand correctly. If the profit becomes lower for the miner, the number of miners will be decreased, and again, as philipma1957 said, will be easier to manipulate the fee. Maybe with fewer miners than right now we have, you may see no more 1sat/byte tx because it will be easier to manipulate the fee.
Halving lowers the profit for miners but that doesn't mean that halving is unnecessary. When profit becomes lower but the support remains the same or increases, price increases too. You completely ignore the fact that high transaction fee is something that pushes a lot of people to use altcoins for transactions. This affects the bitcoin and its adoption very negatively.
Indeed, halving could lead to lower profits for miners as they receive less reward per block mined. However, on the other hand, it could also lead to lower inflation and increased confidence in bitcoin as an asset. There is a view that halving could lead to an increase in the price of bitcoin, as a reduced number of new coins in circulation could lead to an increased demand for existing coins. However, this is no guarantee of a price increase and depends on many other factors.

High transaction fees may indeed encourage people to use altcoins for transactions, which could have a negative impact on the acceptance of bitcoin as a means of payment. However, it should be remembered that bitcoin also has other advantages, such as security, decentralisation and durability. Moreover, bitcoin transaction fees are not constant and can fluctuate depending on the demand on the network.