A 15 Dollar Transaction Fee For Sending Bitcoin Cash!? 🤯
High Bitcoin Cash BCH transaction fees

A 15 Dollar Transaction Fee For Sending Bitcoin Cash!? 🤯


Bitcoin Cash is famous for its low transaction fees. Well, it is true that at least in most cases, the transaction fees for sending Bitcoin Cash are extremely low.

On the other hand, it can happen that the transaction fees for sending Bitcoin Cash are extremely high, higher than the transaction fees for sending Bitcoin or even Ethereum. 🤨

 

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As you can see on the screenshot, it costs me more than $15 to do a Bitcoin Cash transaction.

In the beginning, I thought that it is an issue with Atomic Wallet, some kind of bug or something. I thought "Hey, BCH transactions only cost a fraction of a cent. This is what Bitcoin Cash is famous for and what all the shillers are telling me."

So at first, I blamed the wallet for it but no, Atomic Wallet is working correctly. It is an issue of the Bitcoin Cash Blockchain. Let me explain.

I have received a lot of very small incoming transactions from noise.cash. The micro-tips were directly credited to my wallet, fractions of cents and lots of them.

If I want to send any amount of the accumulated tokens, the fees are paid for the bytes I move in a transaction. If I move some coins, it is a big difference if I have sent them in one go from an exchange or if I have a lot of single transactions into the address I am using. This is the case with noise.cash.

As my coins at my wallet address carry the information, where they came from, it is a lot of information and a lot of bytes to be moved and written into the next block. Thus the higher fees, if you send from your noise.cash registered wallet, in my case $15!!!

Users from noise.cash are experiencing the same with their wallets. It doesn`t matter what wallet you are using, the small incoming transaction increase the required transaction fee to send the coins from the wallet.

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Other noisers are experiencing the same issue with high transaction fees for Bitcoin Cash. Later, I found this message from noise.cash explaining the issue in detail. Here is an excerpt:

"Some people, after receiving lots of tips are surprised by the fact that their wallets ask for 10% or more to move their money and think of moving to other wallets. That won't help. And the wallets are not to blame. Let me explain why. This situation is pretty unique to noise.cash usage of Bitcoin Cash network, so don't blame wallets. The Bitcoin Cash network operates kind of by "splitting and joining coins". For example, if I have $1.00 in my wallet and send you $0.01, my wallet will split my $1.00 into two, sending $0.01 to you and $0.99 back to me. This transaction has 1 coins going in (called an "input") and 2 coins going out (called "outputs"). Each transaction on Bitcoin Cash network must pay a fee to miners (not to your wallet provider!) so that miners will include the transaction in the next block. Each coin going in costs 146 satoshis (~$0.000657) and each coin going out costs 33 satoshis (~$0.0001485) and then you need to add 10 more satoshis ($0.000045). You don't actually pay for coins, but for storage these coins take, kind of like when you pay to store your photos in cloud, but in this case you pay to miners. (The prices calculated are at $450 per BCH)"

In short: If you have received a lot of tiny incoming transactions in your wallet, sending Bitcoin Cash can become very expensive.

 

Is There A Solution?

After some extended research, I found one solution. A possible solution is to swap the many small coins from time to time which is called consolidation. You can do this by sending all the coins to yourself in the same wallet. This will cost you the transaction fee one time. In my case, it costs me more than $15. Paying these $15 has just one benefit: the next transactions, no matter how big or small they are, will cost you a fraction of a cent. Then you are back to the "legendary" low transaction fees of Bitcoin Cash.

 

My Final Words

I never thought that it will cost me more than $15 bucks to send a Bitcoin Cash transaction. The fact is that I have to pay the $15, no matter what wallet I am using. Honestly, I am still shocked.

At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of Bitcoin Cash and my intention is not to replace your own research. However, it really reflects my own opinion.

If that`s the kind of stuff that you like to read on Publish0x, make sure to hit that follow button. Thank you guys for reading, liking, following, and tipping 👍 

If you like, you can also follow me on Twitter, and also on noise.cash.

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