Suggestions for Getting Around Bitcoin's High Transaction Fees

in bitcoin •  8 years ago  (edited)

I  first got into Bitcoin through the free faucets. I opened my Copay  wallet and was ready to get started. I decided to generate a new Bitcoin  address for each faucet. I figured it would be easier to track where  the money was coming from. The payments started coming in, 10,000  satoshis here and 20,000 satoshis there. I also signed up for some cloud  mining contracts, and small payments were coming in daily. Faucets are a  good way to get a feel for Bitcoin, it helps prep you for thinking in  decimal points. Currently 20,000 satoshis or 0.00020000 BTC is worth  $.26 USD or 26 cents. After about 3 months, I got up to $100 USD worth  of BTC. I was hooked, free money and watching it go up in value was  exciting. 

Initially,  I was just going to hold my BTC in my Copay wallet. I started buying  Bitcoins in larger amounts. I sent it directly to the exchange and  invested in alt-coins. I started to see big gains on my investments, so I  got more Bitcoin to make more investments. The fees seemed reasonable  on those transactions. I decided to use my balance on my Copay wallet. I  selected max amount and was shocked by the fees. I then changed the  Bitcoin Network Fee Policy in Settings to Super Economy. I tried sending  out about $20 USD worth of BTC, and the fees were around $1.5-2.50  range. I did this a few times more, as the fees seemed reasonable. I  am currently trying to withdraw the max amount out of my Copay wallet. I  currently have .039449 BTC in the wallet. The fees settings is at Super  Economy. I  get a message of ".016934 BTC will be deducted for bitcoin networking  fees." That is $22.65 USD fee to send $29.61 USD! I don't really want to  lose that amount to a fee. The later half of the message says, " A  total of 0.00084 BTC were excluded. These funds come from UTXOs smaller  than the network fee provided." UTXO is geek-speak for “unspent  transaction output.” Unspent transaction outputs are important because  fully validating nodes use them to figure out whether or not  transactions are valid– all inputs to a transaction must be in the UTXO  database for it to be valid. Is this .00084 UTXO just gone and can never  be recovered? I'm guessing all the different wallet addresses with lots  of small micro payments is why I'm getting this message. From my  understanding the blockchain is a record of all transactions that ever  occurred with BTC. I'm confused why this small amount costs so much to  send, when larger chunks of BTC around $200 USD worth costs less in fees  to send. Is this a problem with the Copay wallet or a BTC miner's fee  problem? 

I'm  aware of the news of Bitcoin possibly doing a future hard fork or a  soft fork. Talk of adopting SegWit could be possible and we are waiting  to see how it works with Litecoin's recent adoption of it. Future  changes in how Bitcoin operates, could fix my current problem. I love  Bitcoin, but this high fee is kind of a turn off for me. If this isn't  fixed, then it makes more sense to just use other coins with much lower  fees to send money. 

Did I do something wrong?

Is the UTXO causing this?

Is this a Copay wallet error?

Should I wait it out and hope Bitcoin fixes the fee structure?

Should I just suck it up and take the hit on the fees?

Should I add more bitcoin to the wallet and send it out, hoping the larger amounts pull some of the micro payments out with it?

MrBanana

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  
  ·  8 years ago (edited)

The fees are lower during weekends, so you may try send all your coins to yourself in saturday or sunday in order to merge them and get lower cost on the following transactions.

To calculate the transaction size in bytes you can use the following formula:
inputs plus 180 + outpouts plus 34 + 10 plus or minus inputs for standard public keys or inputs plus 148 + outpouts plus 34 + 10 plus or minus input for compressed publick keys.

And then use some webpage that shows transactions fees per byte like http://bitcoinfees.21.co/ to calculate the proper fee.

how old are those accounts, you might try to clam dig with them if you have the private keys to those accounts, could pay hansom, if there before a certain date

This is how to get around bitcoins networking fee!