How does crypto have a future when fees for transactions are so high?

Visa is instant and the fees are essentially 0.

Sending cryptos and paying for things with cryptos take longer then 5 seconds so what utility is there? I'm not trying to troll I'm genuinely asking.

34 thoughts on “How does crypto have a future when fees for transactions are so high?”

  1. Look up Loopring, they have Layer2 Zkrollup technology that allows instant transactions (4000 per second) and fees comparable to visa/mastercard/paypal.

    They are layer 2 on top of Ethereum.

  2. Most of the people saying Crypto is the future are saying the same because they have invested money in it and they want to hear/say nice things about it. Goes for every thing we own, We can’t listen anything against it.

    Cryptocurrency will flourish only if Transactions are instant and fee is 0 or close to 0. There are currencies like Nano and XLM which solve that purpose.

    VISA might be instant and free but what if you are sending 20k USD overseas. A lot of middlemen, constraints, fee gets involved.

    I am a Nano holder so of course I will praise Nano, But your question gives me no other option apart from mentioning it.

  3. Nano is instant and the fees are actually 0.

    over 100 million transactions since 2015 with no fee.

    If people want cheap transactions, crypto delivers.

  4. For the record, Visa charges a pretty penny to merchants to use their payment network. It totals up to $20 billion a year.

    Layer 2 technology, such as Lightning on Bitcoin, brings the transaction costs down to fractions of a penny. I imagine there will be a net savings, though I haven’t done the math.

  5. Can you run a smart decentralised financial network on your visa card? Buying snacks from the store is only one part of what cryptocurrencies are enabling. We are trying to wrest away control of the entire legacy financial system from the old banks and institutions, including reserve currencies, stores of values, investment vehicles, smart contracts, savings accounts, derivitives etc

  6. Theres always a tradeoff between decentralisation and scalability. Binance smart chain has high throughput and low fees as it only has 21 nodes. Bitcoin has low tps and high fees but it has thousands of nodes. the only chain to get this balance right is Algorand with high tps and low fees while staying decentralised.

  7. Your not using the right coins, there are many coins with almost instant and with fee less than 0.01 $

    It sometimes depends on the type of wallet you use.

    But it’s true if many of them will get the use, like top 10 coins have, they might have the same fee problem.

    My investing strategy is, if coin has more than 1$ fee for transaction, I’m not invested in it.

    Dropped crypto in 2018 because BTC and Eth fee was 2$. And I knew it’s impossible to get adopted as currency like that.

    Now my other condition is, that coin has to have option for privacy. It’s essential for adoption.

  8. Check IOTA too. Feeless, scalable, quick. Really great project and they have turned a massive corner recently compared to the early days

    A couple critical items to be delivered to be decentralised (Coordicide), but could still (and actually is) used by companies in its current form


    Ethereum is probably the basis of your question – there are a few Layer2’s that solve the high fee’s (mostly). Check MATIC… basically nothing to process transactions

  9. You are right to question the state of many crypto currencies regarding fees and speed. In my opinion crypto that take fees will die. Crypto that take longer than 1 s per transaction will die.

    Luckily there are crypto currencies that solve these problems, e.g. IOTA and Nano.

  10. There are dozens of protocols that have super low fees (~ $0.01), some even have no fees at all.

  11. A very nice question… But most projects have now focused on how to solve that problem like one of the projects I know, SPOOL has one of it’s core goal as reduction of fees paid during staking…

    But then this problem of high transaction fees is mostly in ETH for now …..

  12. Loopring is on the verge of releasing big Layer2 project. Essentially saying they are going to make it significantly cheaper to transfer/trade cryptoos. LoopringWallet and LRC are worth looking into imo.

  13. Fees aren’t zero with Visa. The seller pays a 1.3-3.6% fee on transactions. And while the purchase is instant and you can take what you have bought home, the transaction takes 1-3 days to clear the ledger.

    The fees will come down as adoption peaks and levels off. Right now the market is setting the price. People are making so much money on ethereum that they are willing to pay high fees.

  14. Check out LoopRing (LRC). It’s a DEX Layer 2 with the cheapest gas fees out. Like $0.15 on the $1 per transaction, and it’s built on the Ethereum chain, so in time it will get adopted by the masses. It’s also the tech that the new GameStop NFT Marketplace is being built on

  15. You can’t make money being a banker-middleman if you don’t break your coin to need a layer two solution.

  16. You shouldn’t lump all crypto’s in together. Take a look at the lightning network.

  17. It takes a couple of days to settle a visa transaction behind the scenes. That’s why it’s called credit not cash.

  18. In the case of Bitcoin, the Lightning Network is the solution of the future (and already the present) for use as a means of payment daily.

  19. Credit card fees are quite high for merchants. Many places don’t even accept AmEx due to ridiculously high fees.

  20. FYI Visa charges 1.75% of the value of the transaction which in most cases is the merchant who has to pay for it.


    i live in Ontario Canada, fees might differ per location, not sure

  21. Lightning network and Layer 2 in general is the only hope. Otherwise Bitcoin and Ethereum would be dumb to use for a coffee.

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