{"type":"rich","version":"1.0","author_name":"Tom Harding [ARCHIVE] (npub1ms…pmwjy)","author_url":"https://nostr.ae/npub1msef5qkfwz4t7qacwxz775wgdtlytph78g2g2z903x90874u263sypmwjy","provider_name":"njump","provider_url":"https://nostr.ae","html":"📅 Original date posted:2015-07-30\n📝 Original message:Yes.  So far, the transaction count factor has completely dominated the\nper-tx fee factor.  This fact should be of great interest to miners.\n\n\nOn 7/30/2015 7:25 AM, Dave Hudson wrote:\n\u003e\n\u003e\u003e On 30 Jul 2015, at 06:14, Tom Harding via bitcoin-dev\n\u003e\u003e \u003cbitcoin-dev at lists.linuxfoundation.org\n\u003e\u003e \u003cmailto:bitcoin-dev at lists.linuxfoundation.org\u003e\u003e wrote:\n\u003e\u003e\n\u003e\u003e Another empirical fact also needs explaining.  Why have average fees *as\n\u003e\u003e measured in BTC* risen during the times of highest public interest in\n\u003e\u003e bitcoin?  This happened without block size pressure, and it is not an\n\u003e\u003e exchange rate effect -- these are raw BTC fees:\n\u003e\u003e\n\u003e\u003e https://blockchain.info/charts/transaction-fees?timespan=all\u0026daysAverageString=7\n\u003e\n\u003e I've not published any new figures for about 8 months (will try to do\n\u003e that this weekend), but the thing that that chart doesn't show is\n\u003e what's actually happening to fees per transaction. Here's a chart that\n\u003e does: http://hashingit.com/analysis/35-the-future-of-bitcoin-transaction-fees\n\u003e\n\u003e The data is also taken from blockchain.info so it's apples-for-apples.\n\u003e It shows that far from a fees going up they spent 3 years dropping. I\n\u003e just ran a new chart and the decline in fees continued until about 8\n\u003e weeks when the \"stress tests\" first occurred. Even so, they're still\n\u003e below the level from the end of 2013. By comparison the total\n\u003e transaction volume is up about 2.4x to 2.5x (don't have the exact number).\n\u003e\n\u003e\u003e ... more evidence that conclusively refutes the conjecture that a\n\u003e\u003e production quota is necessary for a \"functioning fee market.\"  A\n\u003e\u003e production quota merely pushes up fees.  We have a functioning market,\n\u003e\u003e and so far, it shows that wider bitcoin usage is even more effective\n\u003e\u003e than a quota at pushing up fees.\n\u003e\n\u003e I think it's equally easy to argue (from the same data) that wider\n\u003e adoption has actually caused wallet users to become much more\n\u003e effective at fee selection. Miners (as expected, assuming that they\n\u003e hadn't formed a cartel) have continued to accept whatever fees are\n\u003e available, no matter how small. Only where there has been an element\n\u003e of scarcity have we actually seen miners do anything but take whatever\n\u003e is offered.\n\u003e\n\u003e Clearly history is not an accurate indicator of what might happen in\n\u003e the future, but it seems difficult to argue that there has been any\n\u003e sort of fee market emerge to date (other than as a result of scarcity\n\u003e during the stress tests).\n\u003e"}