International Conference on Financial Cryptography and Data Security

FC 2015: Financial Cryptography and Data Security pp 19-33 | Cite as

Trends, Tips, Tolls: A Longitudinal Study of Bitcoin Transaction Fees

Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 8976)

Abstract

The Bitcoin protocol supports optional direct payments from transaction partners to miners. These “fees” are supposed to substitute miners’ minting rewards in the long run. Acknowledging their role for the stability of the system, the right level of transaction fees is a hot topic of normative debates. This paper contributes empirical evidence from a historical analysis of agents’ revealed behavior concerning their payment of transaction fees. We identify several regime shifts, which can be largely explained by changes in the default client software or actions of big intermediaries in the ecosystem. Overall, it seems that rules dominate ratio, a state that is sustainable only if fees remain negligible.

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Copyright information

© International Financial Cryptography Association 2015

Authors and Affiliations

  1. 1.Department of Information SystemsUniversity of MünsterMünsterGermany
  2. 2.Institute of Computer ScienceUniversity of InnsbruckInnsbruckAustria

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