Recently Bitcoin has been difficult to withdraw due to the fact that it has now been seeing high network fee to process the transaction which has made a lot of people to lose interest in having BTC as sending or withdrawing $100 worth of BTC will attract $10 network fee as a friend of mine did last week which is so bad to be honest.
What is the reason behind BTC high network fee.
- Thread starter Blessed19
- Start date
This is because of the new developments of the chain, after the update of Bitcoin of Taproot, some developers realized that they could introduce smart contracts in Bitcoin, so some developers introduced the famous ordinals, also the BRC-20 tokens among others, so they have congested the network because these tokens and smart contracts occupy a good space in the network and therefore obtain a space in these Blocks is more expensive since the space is limited.
Wow, what a very detailed and easy to grasp explanation as regards the cost of bitcoin high transaction fees, I think ther should be a way out in making it more subsidized it reduced to about 10 percent, so others can get along with it, that's just my opinion and thought.
What do you mean by reducing to 10%? This is not something that anyone can decide since being an algorithm is calculated automatically, as there is less space in the chain, the little space left due to congestion becomes more expensive since in addition the miners have to prioritize some blocks to others due to congestion, those who pay more will be served before and those who pay less fees go after, If you add a small fee you are likely to get stuck for a long time, because like everything, it is a matter of supply and demand.
How has it addressed the situation? As at my last check, bitcoin transactions still attract a high gas fee. I have switched to other cryptocurrencies with lower network fees to perform my transactions.
The only option proffered by some people is to swap the bitcoin to another crypto currency before you apply for withdrawal. This has been utilized by some people to work around the high gas fees of Bitcoin transactions.
Congestion and high value of bitcoin is a contributing factor. Moreover, bitcoin is more traded than any other coin. A lot of people are only interested in bitcoin therefore congestion in transactions.
- Thread starter
- #14
Well it is not bad to make use of LTC or bch to make your crypto withdrawals but I am already used to BTC for my withdrawal all the time and there is a way to reduce the network fee when withdrawing.
I think the reason behind the high gass fee or transaction fee of bitcoin is that because it have very high price and in order to withdraw you need to pay for confirmation for all bitcoin networks so that will make the fee high.
I think the transaction fee of bitcoin are based on the amount of bitcoin you are sending or withdrawing, most of the times the transaction fee of bitcoin os more thsn 30% of your transaction amount, and that is too much for me. Actually 3000 satoshi is not that much but it depends on how much you were sending.
I also don't know the reason but the fact that the price of BTC is high does not mean that the transaction fee should also be high. It is not done that way. I guess there is something that we don't know about
Oh okay, i always think that one of the reason for bitcoin and Ethereum transaction fee and gas fee is high because of the price they have and when the price is high the gas fee get higher and for confirmation it needs to maid some high payment, i guess i am wrong