How Do Bitcoin Transaction Fees Work?

A Beginner's Guide To Bitcoin:
https://www.amazon.com/gp/product/B08RX8Q4ZQ

In this video, I discuss how Bitcoin transaction fees work, in the context of unconfirmed transactions waiting in the mempool to be picked up by a miner.

The more crowded the mempool, the higher transaction fees will usually be.

Transaction fees are also determined by the amount of data in your transaction. If you have more inputs or outputs, you will pay a higher fee.

At the end of the video, I discuss the importance of doing consolidation transactions when the mempool is relatively empty and fees are low. This will save you money if you ever need to move that Bitcoin later on, by consolidating it into a single UTXO.

Not investment advice! Consult a financial advisor.

Examples of large amounts of Bitcoin being sent for very low fees:
https://decrypt.co/46346/someone-just-sent-1-billion-in-bitcoin-paid-only-3-in-fees
https://cointelegraph.com/news/bitcoin-worth-2-billion-moves-for-just-78-cents
https://cointelegraph.com/news/someone-transferred-a-billion-dollars-in-bitcoin-for-less-than-5

Mempool.space:
https://mempool.space/

Block 708,168:
https://mempool.space/block/00000000000000000000c02c87d5b5038a9a136c924607929a0edb5a61c947da

vByte definition:
https://river.com/learn/terms/v/vbyte/

Setting transaction fees on a Trezor:
https://wiki.trezor.io/Transaction_fee

Sometimes the mempool is almost empty:
https://www.cryptodefinance.com/bitcoin-mempool-almost-empty-china-mining-ban/

Mempool by vBytes:
https://mempool.space/graphs#6m

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https://www.trader.university/join
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https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Bitcoin
#BitcoinFees
#Mempool

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