There has been a lot written in the last couple of months about the excessive ETH and BTC transaction fees. Never really gave it too much attention, as it didn't really affect us. Nothing needed to be sent urgently.
For example, being charged $19 AUD to transfer $30 AUD DAI from the Atomic Wallet to Binance. While the DAI was free crypto from Publish0x, we still didn't want to use it all up in paying the Gwei bill. The immediate solution was to put it in the Too Hard Basket aka To Do List. So we just sit and wait it out. Eventually things will calm down again.
With hindsight it would have been better to just send straight to Binance, as Publish0x was paying the fees. But at the time we were unsure what we wanted to do with the DAI.
The Atomic Wallet was created as a research project for a @Publish0x Writing Competition. We ended up with 110 AWC as some compensation for our trouble and trust me the Atomic Wallet has been a lot of trouble. Will save that story for another day.
Regulation Of Crypto
There has been 2 snip bits that did get my attention.
FinCen and self custody wallets
SEC and Ripple
I don't want to get into whether regulation is good or bad. In the end it is irrelevant. It will happen in some form, at some point in time.
Winds Of Change
It was time to take something off To Do List or out of the Too Hard Basket
Time For Action
At the being of Covid season, we bought a Ledger Backup pack. The Backup pack has a Nano X for every day use and a Nano S as a back up to store somewhere safe.
It sat in the sock drawer, all through Covid and the Ledger hack scandal.
Recent events have provided the impetus to take action. Time to consolidate the portfolio. Time to get rid of any shitcoins that we still hold. Time to put the rest of our portfolio into cold storage and ride out the storm.
That is before Coinbase/Binance and their ilk, decide they want KYC for the receiving wallet. Or worse still Uncle Sam wants your Bitcoin.
ETH And ERC20 Tokens
Our only real hiccup with the ERC20 tokens was having to pay $40+ AUD to swap:
GNT to GLM
REPv1 to REPv2
Gulp!!! That was always going to use more Gwei than a normal wallet to wallet transaction, as it involved a smart contract. But $40+ AUD, ouch.
The rest of the ERC20 transactions ranged from $4.00 AUD to $6.00 AUD. While in the past we have paid considerably less, we were not prepared to wait for ETH 2 to deliver on the promise of lower transaction fees.
Sending ETH requires less Gwei than sending ERC20 tokens.
Sometimes you just have to put a teaspoon of cement in your coffee and harden the fck up. (sorry just had to throw in some Ozzy slang).
Zcash And Micropayments
We operate Pipeflare and GlobalHive accounts, which instantly send micropayments of ZEC to our Exodus wallet every day.
That is 2 micropayments per day for months.
When we tried to send the ZEC from Exodus to the Nano X address, a warning message popped up.
Something to that effect.
explorer.zcha.in shows 352 inputs and 1 output. The fee was 0.00052142 ZEC which equated to $0.43 AUD.
Normally the ZEC mining fee has been around 0.00002260 ZEC or $0.0024266 AUD. So while $0.0.43 AUD is not huge it is still 160 times bigger than a transaction with a single input.
I did sort of know that, as in 2017 when the Bitcoin mining fees also spiked. Checking why we were having to pay $30 AUD to send Bitcoin came across the following information.
Exodus Support Blog Explains
The Bitcoin Shock
Our first attempt at emptying the Bitcoin Wallet resulted in $190 AUD mining fee. Second try it had come down to $160 AUD. We were hoping to get it closer to $100 AUD. But that was not going to happen any time soon, so settled for $140 AUD, just for peace of mind.
There was a total of 26 deposits over 3 and half years, even though it only shows 19 sender addresses
The processing of this information required 32 inputs to roll it into 1 output.
Bitcoin And UTXO Based Currencies
This only affects BTC, BCH, BSV, BTG, DASH, LTC, DGB, XMR, ZEC etc that use the UTXO model.
What Is UTXO's
UTXO is the acronym for Unspent Transaction Output.
UTXO helps avoid the problem of Double Spending. Thank Satoshi Nakamoto for that concept.
The inputs on a blockchain are deleted when a transaction occurs. At the same time, outputs are created in the form of UTXO's.
The requirement that only unspent outputs are used in further transactions is necessary to stop Double Spending.
The End
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Bragato18 @PaulBridgman8
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