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Thursday, 28 February 2019

BTC fees are already ridiculous, why do Core supporters keep denying there's a problem?

26.7% of all BTC addresses with a balance, have a balance of 0.0001 BTC (~$0.40) or less. BTC transaction fees regularly cost that much to get in the next block.

https://btc.com/stats/rich-list

This is assuming a standard 2 in 1 out transaction, a good number of those probably have more inputs than that.

That means over 6.2 Million addresses effectively cannot be used, and are bloating the UTXO set.

By Contrast, less than 2 Million BCH addresses contain 1000 Satoshis or less, and the fee for next block is always 1 Sat./b, or ~340 Satoshis for a standard 2 in 1 out transaction.

https://bch.btc.com/stats/rich-list

The question is, what happens with $5 BTC fees? Assuming the price rises to $5K and fees to $5, (0.001 BTC, or ~300 sat./b) then ~71.75% of BTC addresses (~16.7 Million addresses!) would require a fee greater than or equal to 10% their current balance! Also 11.6 Million (or ~50% of all) addresses would require a fee greater than their current balance!

And if fees go to $50, then those ~16.7 million addresses would require a fee greater than their current balance!

Why is it so hard to understand that excessive fees are not the solution to BTC's problems?

submitted by /u/324JL
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from Bitcoin - The Internet of Money https://ift.tt/2BUIze8

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