Sirwin
Sirwin

Have You Ever Considered the Transaction Fees?


Are you blinded by metrics and the standing of a certain coin? Are you the kind of crypto enthusiast who simply follows because of the hype? What about FOMO? No more DYOR thus experiencing FUD! whatever these acronyms are being used for, regardless of how it is being utilized by someone in the crypto community, I am not blinded by mere metrics. Joining the crypto community entails social responsibility because supporting more on the cause not just the coin in itself is more rewarding in the end.

Hence, while checking on the news, I was amazed at how Kim Dotcom shared his thoughts regarding Bitcoin Cash has more utility because even less than a dollar transaction fee is possible. As a merchant or having micro-business, it is more convenient for me to accept digital money like Bitcoin Cash as a mode of payment. Likewise sending money to my sister's account in the Philippines from Seychelles cost me not even a dollar transaction fee unlike if I will send it through remittance exchange.

0ff80e9e5b9837f5971986960022c2fe84d5e9e48a1ac355efb4e7aee6f425a0.jpg

Image Source

Moreover, when I printed out my first Bitcoin Cash scannable QR code, my point of starting with 4.99php or 5 is to let my friends know that they don't need a huge amount of money to start using the wallet per se. What else are we not considering these whole scenarios of using a true peer-to-peer electronic cash system which has more store of value?

When you are having an online or even traditional business, accepting Bitcoin Cash as a mode of payment is more suitable because it is permissionless. Transactions that have a median fee of $0.001 compared to $5.93, txstreet, to that of BTC I wonder if micro-entrepreneurs would be willing to spend more on the fee. I believe that Bitcoin Cash can bring more economic freedom to the world because of its F.E.L.R faster, easier, low fees, and most of all reliable transactions.

Let me give you a scenario;

Merchant A has to buy a product say for example a Cola that costs him $10 and using Bitcoin with a transaction fee of $10! If you're keen on spending double (item plus transaction fees), you know for yourself it is not practical at all.

a74413a736ffa631a66b8846cc80acf8b435eeb673399fcb9506ef6c59c02443.jpg

Merchant B on the other hand decided to buy the same product however he didn't use Bitcoin instead opted to use Bitcoin Cash with a median fee of $0.001. Spending an amount of money without the hassle of higher transaction fees, the scenario is clear that it is more practical and cheaper to do a transaction using Bitcoin Cash.

Speaking of transaction or commission fees, another dilemma for us overseas workers here in Seychelles as I would compare Bitcoin and Bitcoin Cash are like the remittance exchanges in the island. Speaking from experience, sending money through remittance exchange is a headache including the higher commission fees. Moreover when the second variant of Covid hit the country, two of the renowned remittance exchanges were competing not only with the conversion rate but also with the commission fees.

Remittance Exchange A, while sending an amount of money worth 10,000 SCR to the Philippines with a 3.65 conversion rate (the year 2019) of 120 commission fees while Remittance Exchange B on the same amount and though there's a slight difference on the conversion rate of 75 commission fees. Technically saving more money almost half on the commission fees can buy something else. Speaking of practicality, I would rather go for an exchange that has the lowest transaction fees. Some people who do not have the right attitude towards Bitcoin Cash mentioned that we don't see the greater picture of Bitcoin, still the masses know that Bitcoin Cash is what the world needs in terms of peer-to-peer electronic cash system.

222e6068cfdb39a2a61f9c61560bed8b9046c91b3d9ed029f5c8c1a875dd40de.jpg

Roger Ver in his statement during the TNABC 2021 said that bitcoin has a good name reputation but has a horrible user experience, the same as how people in the cryptocurrency community were so ecstatic when Tesla is now accepting BTC as a mode of payment, however, my initial reaction at once boiled down into one thing, what about the transaction fees, would it be almost the same price like the car itself?


image of Cola from Pexels

How do you rate this article?

5


PatJules
PatJules

Schoolpreneur, Financial Advocate, Crypto Trader, Stock Market Investor


How Much Time Have You Wasted?
How Much Time Have You Wasted?

Time is our valuable asset! It is certain that once we have waited for tomorrow of what we can do for today, we have wasted already a lot of opportunities. "Time is money" according to Benjamin Franklin which he referred to the output cost which means that we have let the opportunity to pass because we preferred to delay things. Given our life's realities, I have seen many people even during the pandemic who have wasted their time. I just can't imagine how they preferred to laze around online.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.