BitPay: Why We're Updating the Minimum BitPay Payment Amount

[BitcoinXio]

The Bitcoin network is currently experiencing a period of rapid growth. This is an exciting time to be in Bitcoin, and we're seeing all-time highs in bitcoin transactions processed through BitPay. However, we are also seeing rising miner fees for transactions across the bitcoin network. That's why (effective tomorrow) we're raising the BitPay minimum invoice amount from $0.04 to $1.00.

While transactions on the Bitcoin network are increasing, the current limit on transactions that can be processed in each block (group of transactions) on the network has remained the same. The network capacity will likely remain the same for the foreseeable future. Fees have increased to bid for the limited supply of space. Now that fees are reaching an average of $1 per transaction across the Bitcoin network, it's becoming uneconomical for users to make micropayments under $1.

It's also becoming increasingly expensive for BitPay to send these transactions to our exchange partners and merchants.

BitPay Blog Post: https://blog.bitpay.com/minimum-invoice/

[Rmcdermott927]

It makes sense, as paying a 30 cent fee on a .04 cent transaction only creates wallet dust and further congests the network.

[BitcoinXio]

It makes sense, as paying a 30 cent fee on a .04 cent transaction only creates wallet dust and further congests the network.

Yes makes sense for BitPay and other businesses. It does not make sense for Bitcoin though to be going through all these fee issues under a premature artificially induced fee market. Things need to change or we will lose more businesses, more users, etc. There is a butterfly effect here where if something isn't done, Bitcoin could be usurped by something else or just remain a niche market forever.