What are bitcoin miner fees? Why are miner fees so high?

Bitcoin miner fees are small amounts of bitcoin given to incentivize bitcoin miners (and their operators) to confirm Bitcoin transactions. These fees don't go to BitPay. Bitcoin miners are the particular pieces of hardware that confirm and safe transactions on the Bitcoin network. Miner fees pay miners for the service they supply. See also What Is Bitcoin Mining? How Does Bitcoin Mining Works?

What do bitcoin miner fees do?

Bitcoin miners confirm and safe transactions by adding blocks towards the blockchain. A block can be a group of transactions. The blockchain is Bitcoin's shared public record of transactions. It really is a chain of all previous transactions. Miners should add transactions to the blockchain so the transaction becomes final. No one is capable to reverse a transaction when miners add it to the blockchain.Miners use the miner fees attached to transactions to determine which transactions to confirm first. A big adequate miner fee tends to make it more probably that your transaction will confirm inside a brief period of time. In the event you use use a miner fee that is lower than you should have used (or no fee at all), your transaction might take days and even weeks to confirm. The Bitcoin network may possibly reject your transaction altogether and return the funds for your wallet.

Why are miner fees so high?

Bitcoin miner fees can grow to be high on account of high bitcoin network demand and limited bitcoin network space.Only a restricted amount of information (and so a limited number of transactions) may be added towards the Bitcoin blockchain at a time. When increasingly more individuals send more and more transactions, the cost for acquiring in to the next "block" of bitcoin transactions gets higher and higher. See also Is Bitcoin Mining Profitable?

How do I send bitcoin miner fees?

Most accurate bitcoin wallets incorporate a bitcoin miner fee in all outgoing transactions. To produce sure your wallet contains a correct miner fee, modify your settings to contain a dynamically-calculated fee. That will ensure your transaction arrives on time, even when the Bitcoin network is busy. Wallets like our BitPay bitcoin wallet include this setting by default. If you would like to customize your bitcoin miner fee on the BitPay Wallet, verify out this video. Keep in mind that you could only customize the fee appropriate before you make a transaction.Note: some bitcoin exchanges will not send a miner fees once they transfer funds. As an alternative, they'll deduct the miner fee cost out of your outbound transaction. See also Best cloud mining providers of 2018