[2017-06-09] Rising Network Fees Are Causing Changes Within the Bitcoin Economy

[jamie.redman1]

Bitcoin’s value has grown significantly this year making people’s digital asset holdings worth quite a bit these days. Alongside this, bitcoin mining fees have swelled almost in unison with the price rise and some people have been paying an average of $3-4 per transaction. The rising fees continue to cause concern for bitcoin proponents and businesses using the digital currency for daily operations.

Now bitcoin-focused businesses are pivoting away from using bitcoin for their services or are having customers pay the higher fees. Bitcoin.com has reported on well-known companies such as Coinbase, Xapo, and Bitpay telling their users they can no longer pay the fees themselves. Since then there have been many other startups that have had to pivot their business model due to the rising network fees. Kraken announced on June 8 it was raising its bitcoin withdrawal fees to (0.0025BTC or $7 USD) due to increasing network fees.

Read More Here >>> https://news.bitcoin.com/fees-causing-c ... n-economy/

[mjglqw]

It's a very big problem that needs to be addressed ASAP.

Just recently I was trying to get a friend into bitcoin. Minutes later he downloaded his first wallet. He then asked me to send him a dollar in btc.

That look on his face when I said I paid a $1.5 transaction fee just to send a single dollar.

[startbitcoining]

It's a very big problem that needs to be addressed ASAP.

Just recently I was trying to get a friend into bitcoin. Minutes later he downloaded his first wallet. He then asked me to send him a dollar in btc.

That look on his face when I said I paid a $1.5 transaction fee just to send a single dollar.

I understand how you feel. I thought it was supposed to be cheap to send bitcoin.

[mjglqw]

It's a very big problem that needs to be addressed ASAP.

Just recently I was trying to get a friend into bitcoin. Minutes later he downloaded his first wallet. He then asked me to send him a dollar in btc.

That look on his face when I said I paid a $1.5 transaction fee just to send a single dollar.

I understand how you feel. I thought it was supposed to be cheap to send bitcoin.

One of the selling points of bitcoin is that you can send a huge amount of money for a few cents. Oh well.

[nandibear]

Bitcoin’s value has grown significantly this year making people’s digital asset holdings worth quite a bit these days. Alongside this, bitcoin mining fees have swelled almost in unison with the price rise and some people have been paying an average of $3-4 per transaction. The rising fees continue to cause concern for bitcoin proponents and businesses using the digital currency for daily operations.

Now bitcoin-focused businesses are pivoting away from using bitcoin for their services or are having customers pay the higher fees. Bitcoin.com has reported on well-known companies such as Coinbase, Xapo, and Bitpay telling their users they can no longer pay the fees themselves. Since then there have been many other startups that have had to pivot their business model due to the rising network fees. Kraken announced on June 8 it was raising its bitcoin withdrawal fees to (0.0025BTC or $7 USD) due to increasing network fees.

Read More Here >>> https://news.bitcoin.com/fees-causing-c ... n-economy/

Mr. Redman...Thanks for taking the time and energy to draft and publish this excellent article (though troublesome news) regarding bitcoin sending fees and what seems to be a growing pivot away from customers wanting to use bitcoin as a form of payment as well as business wanting to accept bitcoin as payment.

[Rmcdermott927]

In the beginning it was "you can send transactions for free!"

Then it was "hey, at least it's cheaper than visa"

Now it's very cost inneffective. We need to be the currency for the people.

[mjglqw]

In the beginning it was "you can send transactions for free!"

Then it was "hey, at least it's cheaper than visa"

Now it's very cost inneffective. We need to be the currency for the people.

Definitely. It's like the only advantage left for most people to use bitcoin is due to it being decentralized.