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According to the Blockchain.info: Cost per Transaction, the latest "Cost per Transaction" value is 16 USD. Apparently, it's not the transaction fee, what does it mean then?
What does the "Cost per Transaction" chart on BlockChain.info show?
Answers
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On the chart overview page you find the description "Cost per Transaction: A chart showing miners revenue divided by the number of transactions.".
Meaning, it's the total value of the block reward of a block divided by the number of transactions confirmed on the network in that block.
Here is an example with made up numbers:
- Block reward is
25 BTC + 0.1 BTCin transaction fees. - There are
502transactions in the block. - Current exchange rate is
367.3 USD/BTC.
25.1 BTC / 502 transactions = 0.05 BTC per transaction
367.30 USD/BTC * 0.05 BTC per transaction = $18.37 per transaction
Concerning what will happen after the regular block reward is reduced/discontinued, check out:
Got it，its the total transaction fee reward in one block .Only 16 USD ? it suprises me。Wondering what will miners do after 21million coins are uncoverd; – Willipm – 2014-12-08T09:15:28.913
@Willipm: Not quite. I've added an example to clarify my meaning. – Murch – 2014-12-08T11:17:06.670
@Willipm, "what will miners do after 21million coins are uncoverd": They will just collect the transaction fees. Right now, if fees would be 0.1 BTC per block (worth 36 dollars) that might not be that much. But if 1 bitcoin is worth 1000 dollars, this would mean they can collect 100 dollars every block for handling transactions. – Mr Jones – 2014-12-08T12:47:00.567
@MrJones I supposse what you actually mean is that 1 BTC will worth more than 100000 dollars so the mining pool will not shutdown most of their machines because they can get as much reward as today from a sigle block.I shall buy more coins :) – Willipm – 2014-12-09T01:57:10.557
@MrJones: 100 dollars is still very little in comparison to the current revenue: Currently there are ~$9000 created per block. – Murch – 2014-12-09T14:35:59.150
@Murch I said 100 per block because I don't want to sound too optimistic. Truth is nobody knows how much a bitcoin will be worth in the year 2110, when Bitcoin generation will end. If you want 9000 USD per mined block, then bitcoin would have to be worth around 50,000 USD each and transactions should double. – Mr Jones – 2014-12-09T14:58:36.267
@MrJones: Well, considering that transactions today are still very few, I wouldn't be surprised if their number would still increase by magnitudes. There are several parameters that can change: The number of transactions, the amount in fees, the value of Bitcoin. Who knows, perhaps mining will be run by governments one day as a public good, and therefore not require an income. – Murch – 2014-12-09T15:03:53.730