$82,982,977 USD: $ 0.04 Transaction Fee • Hacker News Board

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#21

Post by vectorpush » Wed, Dec 03, 2014, 4:21 PM UTC

debacle wrote: post #13

vectorpush wrote: post #9

I hope that the recipient intends to use those funds on the darknet or overstock.com, otherwise the fees for converting even a fraction of that sum into usable money will greatly exceed $0.04.

Does bitcoin have the kind of volume/liquidity to make that kind of exchange without causing a significant disturbance in the exchange rate?

Well, I wouldn't expect someone to try cashing out such a large sum at once. I assume they'd just cash out a few thousand here and there as needed.

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#22

Post by eugeneionesco » Wed, Dec 03, 2014, 4:28 PM UTC

MCRed wrote: post #11

This is great. I think the downside, though, is the $0.04 transaction that incurs a $0.04 transaction fee. For instance, there's this transaction for .02 BTC that incurred a $0.19 fee. https://blockchain.info/tx/a2933a1dc53361a7770c2a9d998c1fe30... I'm not sure why this tiny transaction cost so much more than the huge one, but being able to support 0.00045 BTC transactions at reasonable cost is the challenge. This is…

I think this is a non-issue since you're not even able to make such small value transations with traditional banking tools.

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#23

Post by tinco » Wed, Dec 03, 2014, 4:28 PM UTC

MCRed wrote: post #11

This is great. I think the downside, though, is the $0.04 transaction that incurs a $0.04 transaction fee. For instance, there's this transaction for .02 BTC that incurred a $0.19 fee. https://blockchain.info/tx/a2933a1dc53361a7770c2a9d998c1fe30... I'm not sure why this tiny transaction cost so much more than the huge one, but being able to support 0.00045 BTC transactions at reasonable cost is the challenge. This is…

I think because of the design of bitcoin $0.04 transactions are something they want to actively discourage. From what I understand of Bitcoin, the future will hold only large-scale transactions like this one, and as little sub-dollar transactions as possible. (because the network load of the system scales with the transaction quantity)

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#24

Post by pcrh » Wed, Dec 03, 2014, 4:30 PM UTC

deweller wrote: post #20

For those here who are wondering if bitcoin use is growing, here is a graph of transactions over time: https://blockchain.info/charts/n-transactions?timespan=all

How come that doesn't correlate with this graph showing the dollar value of transactions:

https://blockchain.info/charts/estimated-transaction-volume-...

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#25

Post by bpicolo » Wed, Dec 03, 2014, 4:38 PM UTC

pcrh wrote: post #24

deweller wrote: post #20

For those here who are wondering if bitcoin use is growing, here is a graph of transactions over time: https://blockchain.info/charts/n-transactions?timespan=all

How come that doesn't correlate with this graph showing the dollar value of transactions: https://blockchain.info/charts/estimated-transaction-volume-...

Because https://blockchain.info/charts/market-price

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#26

Post by mlrtime » Wed, Dec 03, 2014, 4:38 PM UTC

hkmurakami wrote: post #15

Having been recently charged a 4% worse FX rate than the going rate in an 5-figure international wire transfer, a world where the current financial transaction system is torn apart cannot come fast enough!

If you do this transfer often I recommend moving your currency to a brokerage and then doing a FX trade. You will often get close to BBG spot rate using IB.

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#27

Post by Alupis » Wed, Dec 03, 2014, 4:46 PM UTC

Tech1 wrote: post #8

Any guesses if this is related to the Silk Road coins the feds auctioned off not too long ago? Or the even more recent second auction?

unlikely since the bidding is still going/just-started.

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#28

Post by bap » Wed, Dec 03, 2014, 4:48 PM UTC

pcrh wrote: post #24

deweller wrote: post #20

For those here who are wondering if bitcoin use is growing, here is a graph of transactions over time: https://blockchain.info/charts/n-transactions?timespan=all

How come that doesn't correlate with this graph showing the dollar value of transactions: https://blockchain.info/charts/estimated-transaction-volume-...

Because BTC and blockchain utility do not need to correlate to the exchange rate against USD for the system to have massive inherent value.

[Edit: removed redundant 'correlate']

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#29

Post by ceejayoz » Wed, Dec 03, 2014, 4:50 PM UTC

greenleafjacob wrote: post #2

If it was a credit card transaction, it'd be 2,406,506.

Anyone doing that volume in credit card transactions isn't paying a 2.9% rate like you and I would selling trinkets... and the fee's paying for a variety of protections not present in a Bitcoin transaction.

Re: $82,982,977 USD: $ 0.04 Transaction Fee

#30

Post by ddeck » Wed, Dec 03, 2014, 4:54 PM UTC

mlrtime wrote: post #26

hkmurakami wrote: post #15

Having been recently charged a 4% worse FX rate than the going rate in an 5-figure international wire transfer, a world where the current financial transaction system is torn apart cannot come fast enough!

If you do this transfer often I recommend moving your currency to a brokerage and then doing a FX trade. You will often get close to BBG spot rate using IB.

I'd also recommend this approach. FX is a cash cow business for banks. Money changing is one thing, where the business has cash management risks and cost, but FX on a wire transfer is close to 100% profit for the institution. They trade at mid and keep that 4%.

As the parent poster commented, Interactive Brokers will give you rates close enough to mid as to not matter (e.g. the current rate to buy/sell EUR with USD is 1.2313/1.2312, plus a few dollars commission).