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Transaction fees and Dash value Correlation for NOOB

tpuffer

New member
Hi,

I'm new to crypto-currencies so bear with me.

I'd like to know in simple terms why dash transaction fees are lower than bitcoin and how they relate to an increase in value.

Without factoring new developments or other factors I want to know if the current value of dash was $20000 and I tried to purchase a can of coke will the transaction cost still cents or would they also be ridiculous?


Thanx in advance,
Word to mother.
 
I have been around crypto for a while now and I still barely understand how fees work. And Dash is more complicated because it also has PrivateSend fees, mixing fees, InstantSend fees and proposal fees.

The first thing you need to know is that Dash is committed absolutely to minimizing fees. In the Bitcoin world, fees are part of the scaling debate, so it is a controversial issue. Not everyone in Bitcoin (including core developers) are committed to minimum fees.

The direct answer to your question is No, even if Dash shot up to $20,000 tomorrow, the transaction fee would not be ridiculous because transaction volume is low enough for the fee to be zero. I don't think I have ever paid a Dash transaction fee. But I also use the Dash Core wallet which gives me the zero fee option. You may not have that option with other wallets.

This would be a great topic for @strophy to address because he is very knowledgeable and very good at explaining these things (hint hint, article topic).
 
The direct answer to your question is No, even if Dash shot up to $20,000 tomorrow, the transaction fee would not be ridiculous because transaction volume is low enough for the fee to be zero. I don't think I have ever paid a Dash transaction fee. But I also use the Dash Core wallet which gives me the zero fee option. You may not have that option with other wallets.

Well, actually I think "buying a can of coke" is a typical InstantSend use case. In that way, with the IS fee that will be in effect when DIP0001 fully activates (0.0001 DASH per input), that would mean a $2 minimum fee. Maybe if that was the case the merchant would allow a 0-confirmation normal transaction for such a trivial purchase. But even at those levels the IS transaction would be cheaper than the typical BTC transaction nowadays. Anyway, as jimbursch said, Dash is committed to low fees, and surely they would be lowered (possibly made automatically lowerable) if Dash were to reach $10k - $20k per coin valuation.
 
For now, InstantSend fees are fixed at a certain amount per input, but as the release of 12.2 has shown, that amount will be reduced. I'm not sure if this can be made variable in the same way as normal transaction fees. I will write a wiki article on the fee structure (normal, instant, private) soon!
 
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