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CD9: Bitcoin Transactions, Mempools, and Self Hosting with @wiz and @softsimon_

Citadel Dispatch

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Bitcoin Transaction Fees - Why Do They Exist?

The reason transaction fees exist in the first place is because it's a distributed ledger. If we don't have a cost on the on the transactions, what happens is every transaction always has a cost regardless you have these bitcoins that say we have free transactions. The fact that Bitcoin has transaction fees that are paid by the user are absolutely important to keeping the system distributed in the first Place. Instead of inflating the supply of Bitcoin once it hits the limit of 21 million Bitcoin, miners will also be compensated.

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