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To speed up transaction via Fiat is a Shame for Bitcoin

Note: The author of this article is ShiLiang Huang from Shenzhen, China. He is a prolific translator and author of bitcoin related literature, running a Wechat official account of H13116885.

Bitcoin has been hailed as the king of digital currencies for its three advantages: fast peer-to-peer transactions, worldwide payments and low processing fees. But this is no longer the case.

3.14.8

Bitcoin: no longer a means of payment with low or even zero transaction fees

For the first years of bitcoin’s experience, fees for using bitcoin were very low, the typical transaction fee was around 0.0001 btc/KB. Since 2016, however, the transaction fee is generally over 0.001 btc/KB. And bitcoin’s network congestion is the reason.

As more blocks are filling up, not all transactions can be included in the blockchain straight away. Against this background, many domestic mining pools revealed a transaction accelerator platform where a higher fee can help accelerate transaction confirmation.
Many companies are also working with mining pools to charge more fees for faster transactions and these companies accept RMB. Is it ironic that bitcoin transaction needs to be assisted by the legal currency?

Bitcoin: not a peer-to-peer electronic cash system anymore

For so many years a transaction sent could be confirmed in 10 minutes. At that time, bitcoin was indeed fast peer-to-peer transactions. Now as bitcoin is subject to congestion, ten minutes are often insufficient to confirm a transaction even with a higher fee.

In order to make a transaction jump the queue, one would go to a transaction accelerator platform that serves as a third party. But how come bitcoin is still peer-to-peer if a third party is involved?

How to make bitcoin great again?

The answer is simple and that is to increase the current 1M block size.

The scaling solution has been widely discussed and accepted and it is technologically feasible. So what are you still waiting for, mining pools?

COMMENTS(23)

  • Cindy23
    2 weeks ago Cindy23

    As more blocks are filling up, not all transactions can be included in the blockchain straight away. As a result, mining pools revealed a transaction accelerator platform where RMB are charged to make transaction confirmation faster.  This is so ironic considering RMB is legal currency and bitcoin is decentralized. READ more about this story at:http://news.8btc.com/mining-pools-should-increase-blocksize-to-make-bitcoin-great-again

  • vnvizow
    2 weeks ago vnvizow

    This is no different from paying more mining fees for priority transactions. Seriously with all the posts about scaling this is getting tiring

  • aubert
    2 weeks ago aubert

    Well, it’s has been discussed in Reddit recently: https://www.reddit.com/r/btc/comments/5xhd1z/btccom_transaction_accelerator/. You’re able to accelerate your transaction as long as you can pay the amounts given and then you’ll get fast confirmation, even though it’s just an optional for bitcoin users but still, it’s against what people often said. ” low costs for every transaction “. Just my 2 cents.

  • bitcampaign
    2 weeks ago bitcampaign

    I hope also bitcoin prices at the current high prices should reduce transaction costs is good enough for the miners also benefit, but saw many full transaction as they make arrangements greater costs to more quickly get confirmation that really did not like it

  • 1Referee
    2 weeks ago 1Referee

    Quote from: bitcampaign on March 14, 2017, 09:22:50 AM
    I hope also bitcoin prices at the current high prices should reduce transaction costs is good enough for the miners also benefit, but saw many full transaction as they make arrangements greater costs to more quickly get confirmation that really did not like it

    I understand your point, but a higher price doesn’t result in the fee to drop. Especially if you look how certain entities are trying to choke the network with rubbish transactions. It might be done to artificially push the transaction fees higher where some sort of an auction effect gets created (people outbidding each other with higher fees), or what I personally think, it’s coming from an alternative side that just wants to make Bitcoin as it is look bad because it can’t cope with all transactions.

  • Dimelord
    2 weeks ago Dimelord

    Quote from: Cindy23 on March 14, 2017, 08:17:10 AM
    As more blocks are filling up, not all transactions can be included in the blockchain straight away. As a result, mining pools revealed a transaction accelerator platform where RMB are charged to make transaction confirmation faster.  This is so ironic considering RMB is legal currency and bitcoin is decentralized. READ more about this story at:http://news.8btc.com/mining-pools-should-increase-blocksize-to-make-bitcoin-great-again
    Yeah, i had to wait for around six days for my transaction to get confirmed due to low fees.The main feature of bitcoin,low transaction fees has been compromised.Here after, bitcoin might be liked for its other salient features and not for low transaction fees any more.

  • Toyking
    2 weeks ago Toyking

    yes it is a shame, I guess the problem will be solved in the end of the year.

  • randy8777
    2 weeks ago randy8777

    Quote from: Dimelord on March 14, 2017, 09:52:53 AM

    Quote from: Cindy23 on March 14, 2017, 08:17:10 AM
    As more blocks are filling up, not all transactions can be included in the blockchain straight away. As a result, mining pools revealed a transaction accelerator platform where RMB are charged to make transaction confirmation faster.  This is so ironic considering RMB is legal currency and bitcoin is decentralized. READ more about this story at:http://news.8btc.com/mining-pools-should-increase-blocksize-to-make-bitcoin-great-again
    Yeah, i had to wait for around six days for my transaction to get confirmed due to low fees.The main feature of bitcoin,low transaction fees has been compromised.Here after, bitcoin might be liked for its other salient features and not for low transaction fees any more.

    sorry, but i find it very hard to believe that you had to wait six days for your transaction to get confirmed. nodes won’t re-broadcast transactions that have almost zero chances of getting confirmed for several days in a row. or you have a node running where you are pushing that transaction constantly to the network yourself. but i doubt that.

  • DomainMagnate
    2 weeks ago DomainMagnate

    Instead of using these RBM services to accelerate transaction and paying them for doing this,wouldn’t it be better to increase the transaction fee to get fast confirmation?I have seen there are thousands of people who either do not want to pay the transaction fee or add as less as they can and that could be the reason of chocking network

  • Xester
    2 weeks ago Xester

    Quote from: Cindy23 on March 14, 2017, 08:17:10 AM
    As more blocks are filling up, not all transactions can be included in the blockchain straight away. As a result, mining pools revealed a transaction accelerator platform where RMB are charged to make transaction confirmation faster.  This is so ironic considering RMB is legal currency and bitcoin is decentralized. READ more about this story at:http://news.8btc.com/mining-pools-should-increase-blocksize-to-make-bitcoin-great-again

    What is the big deal in that, its just normal in any business. Bitcoin is not yet autonomous and still dependent on fiat currency to give it a value. Using simple logic when we pay the miners fee with bitcoin the miners are going to convert that bitcoin to their local fiat currency to pay for the electric bills, salary of personnel and many more. So paying them with fiat currency is not a problem since if we will pay them with bitcoin they will just sell it or convert it to fiat currency.

  • peter0425
    2 weeks ago peter0425

    Quote from: DomainMagnate on March 14, 2017, 10:23:16 AM
    Instead of using these RBM services to accelerate transaction and paying them for doing this,wouldn’t it be better to increase the transaction fee to get fast confirmation?I have seen there are thousands of people who either do not want to pay the transaction fee or add as less as they can and that could be the reason of chocking network

    Maybe people don’t want to pay higher transaction fees to get faster confirmation? Because it will defeat the purpose of bitcoin as being a fast micro-payment system? Well I have to admit this transaction fee issue is really getting out of hand and I’m also frustrated to the point of not using bitcoin anymore as mode of online payment. But I think this is another roadblock in front of us so I might just still continue to have bitcoin as alternative payment until such time that a solution has been made by core dev.

  • ETFbitcoin
    2 weeks ago ETFbitcoin

    The fees isn’t very high, but no longer suitable for micro/small-transaction. I still prefer to pay higher fees than use this kind of services.This is sign for community miners to choose to support BU/SegWit/other solution very soon

  • BitcoinHodler
    2 weeks ago BitcoinHodler

    i can see how such services can be useful in some rare cases but it is pretty messed up to ask for something like this while you are earning pretty high amounts of money from the block reward you are already mining and with the bitcoin price at current levels you are already making a very huge amount of profit from 12.5BTC reward.and all the while ViaBTC is doing the same thing for free!

  • BitcoinAllBot
    2 weeks ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • sportis
    2 weeks ago sportis

    Quote from: Cindy23 on March 14, 2017, 08:17:10 AM
    As more blocks are filling up, not all transactions can be included in the blockchain straight away. As a result, mining pools revealed a transaction accelerator platform where RMB are charged to make transaction confirmation faster.  This is so ironic considering RMB is legal currency and bitcoin is decentralized. READ more about this story at:http://news.8btc.com/mining-pools-should-increase-blocksize-to-make-bitcoin-great-again

    In fact there is not such as an “innocent” service that pays someone with fiat to accelerate his transaction but an advertisement from Jihan Wu supporting the BU communication channel. There are some ways like as opt-in RBF feature some wallets have to speed up an unconfirmed transaction increasing the fees without the need to go with fiat. Here you go

  • Mometaskers
    2 weeks ago Mometaskers

    Oh, the irony! It’s like bitcoin’s not enough. Thank goodness I only transact on localbitcoins and don’t have to worry about the transaction fees.  It really is a shame that it seem to be no more useful for small transactions. People had hopes that they can use it as fiat substitute when going to stores. It was also promising as a remittance medium though it seems now people would have withhold their earnings first till it’s large enough to be worth the fees before sending it to their families.

  • pik0r
    2 weeks ago pik0r

    Great competence at work.

  • Carlton Banks
    2 weeks ago Carlton Banks

    You know the other (involving less hassle) way to speed up confirmation? Don’t pay miners fiat, pay them BTC instead

  • lite
    2 weeks ago lite

    Quote from: Cindy23 on March 14, 2017, 08:17:10 AM
    As more blocks are filling up, not all transactions can be included in the blockchain straight away. As a result, mining pools revealed a transaction accelerator platform where RMB are charged to make transaction confirmation faster.  This is so ironic considering RMB is legal currency and bitcoin is decentralized. READ more about this story at:http://news.8btc.com/mining-pools-should-increase-blocksize-to-make-bitcoin-great-again
    Viabtc service/tool is for free. you can accelerate your tx without paying anything. here see/try it yourself https://www.viabtc.com/tools/txaccelerator/

  • __Cyber_Dildonics__
    2 weeks ago __Cyber_Dildonics__

    There seems to be a lot of low effort spam coming from this site.

  • vrm86
    2 weeks ago vrm86

    Quote from: ETFbitcoin on March 14, 2017, 01:49:13 PM
    The fees isn’t very high, but no longer suitable for micro/small-transaction. I still prefer to pay higher fees than use this kind of services.This is sign for community miners to choose to support BU/SegWit/other solution very soon

    Seriously? Few days ago I’ve paid 1,92$ fee to not make my money stucked. It took 3,5h for transaction to be confirmed. Is that deal fair and reasonable in your opinion? Bitcoin’s competitiveness potential is decreasing everyday with 1MB block size.

  • DomainMagnate
    2 weeks ago DomainMagnate

    Quote from: peter0425 on March 14, 2017, 01:39:19 PM

    Quote from: DomainMagnate on March 14, 2017, 10:23:16 AM
    Instead of using these RBM services to accelerate transaction and paying them for doing this,wouldn’t it be better to increase the transaction fee to get fast confirmation?I have seen there are thousands of people who either do not want to pay the transaction fee or add as less as they can and that could be the reason of chocking network

    Maybe people don’t want to pay higher transaction fees to get faster confirmation? Because it will defeat the purpose of bitcoin as being a fast micro-payment system? Well I have to admit this transaction fee issue is really getting out of hand and I’m also frustrated to the point of not using bitcoin anymore as mode of online payment. But I think this is another roadblock in front of us so I might just still continue to have bitcoin as alternative payment until such time that a solution has been made by core dev.
    No it will defeat the purpose of bitcoin being the cheapest method of transferring values.By adding more fee,the transaction will actually move faster due to quick confirmation,I think it is unethical practice by miners to give priority to high fee attached transactions.

  • carlerha
    2 weeks ago carlerha

    Quote from: ETFbitcoin on March 14, 2017, 01:49:13 PM
    The fees isn’t very high, but no longer suitable for micro/small-transaction. I still prefer to pay higher fees than use this kind of services.This is sign for community miners to choose to support BU/SegWit/other solution very soon
    yes it think the fee must be regulated and not to let them as free option, there must be a regular check on the increasing fees of the exchanges and not to let them as free handed.

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