Once there is sufficient data, the simulation will begin to run and produce fee estimates.
Bitcoin Fees for Transactions |
The interface mirrors that of bitcoin-cli estimatefee :. Unlike bitcoin-cli , if the input argument is ommitted or is 0, the estimates for all confirmation times is returned:. Feesim currently assumes that miners have the same minrelaytxfee as your node, so don't set it too low, or else wait time estimates for low fees will be inaccurate. Staying with the defaults should be OK.
See commit de64 for details. You may want to configure Bitcoin Core's maxmempool to be lower than the default, as this will make the simulation faster and require less memory.
THe downside is having less comprehensive mempool data. The simulation is CPU intensive, whereas data collection is not, so you may not want to run the sim all the time, while still collecting data. To do this, use feesim pause to pause the simulation, and feesim unpause to resume. By default, fee estimates are updated every minute.
It's possible, however, that a single simulation run takes longer than a minute, due to insufficient CPU resources or exceptionally high transaction traffic. In general, this will not cause any major problems; it only causes the fee estimates to be updated less regularly. It's possible, nevertheless, to reduce the simulation run time by lowering maxblocksconfirms or numiters in the config.
You can monitor the simulation run time with feesim metrics ; sim. X are the run time statistics, in nanoseconds, for roughly the last X simulation runs. As mentioned earlier, Feesim requires, by default, data from of the past blocks it must be online when the blocks are discovered in order for the data to be logged. This is about 1 week; if you don't want to wait that long, you can contact me for a copy of the block data.
Skip to content. Model-based Bitcoin fee estimation bitcoinfees.
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The best answers are voted up and rise to the top. Stack Overflow for Teams — Collaborate and share knowledge with a private group. Create a free Team What is Teams? Learn more. How to estimate optimal fees for transaction in bitcoind? Ask Question. Asked 4 years, 3 months ago.
Active 2 years, 4 months ago. Viewed 6k times. Improve this question. ThePiachu ThePiachu Add a comment. Active Oldest Votes. You should use estimatesmartfee Please use estimatesmartfee for more intelligent estimates. Arguments: 1. Improve this answer. It operates under the assumption that transactions paying higher fee rates will be included in blocks before transactions with lower fee rates.
For example, if you wanted to know what fee rate you should put on a transaction to be included in a block within the next 5 blocks, you would start by looking at the bucket with the highest fee rate transactions and verifying that a sufficiently high percentage of them were confirmed within 5 blocks.
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Then you would look at the next highest fee rate bucket, and so on, stopping at the last bucket to pass the test. The average fee rate of transactions in this bucket will give you an indication of the lowest fee rate you can pay while still having a sufficiently high chance of being confirmed within your desired 5 blocks. More specifically, when a transaction enters the mempool, it makes note of the current block height. When a new block arrives, it counts the number of transactions in each bucket and the total amount of fee rate paid in each bucket.
Then it calculates how many blocks Y it took each transaction to be mined and tracks an array of counters in each bucket for how long it to took transactions to get confirmed and increments all the counters from Y up to the highest bucket. This methodology prevents the fee estimates from being skewed by several potential problems:.
- Bitcoin Fee Calculator & Estimator - BTC & USD - Segwit Support;
- All about transaction fees in Electrum.
- Explaining bitcoin transaction fees – Blockchain Support Center?
- bitcoin confirmation booster.
For example:. This had ripple effects:.
Learn about bitcoin fees...
If a fee estimate algorithm fails to correctly predict the future state of the fee market then transactions can get stuck. Another method for correcting low-fee transactions is to use Child Pays For Parent, where you add much larger fees to new transactions that spend outputs of your stuck low-fee transactions. This incentivizes miners to prioritize confirming the entire set of your transactions. Improvements can be made that incorporate forward-looking data by examining unconfirmed transactions in the mempool.
Bitcoin Average Transaction Fee
By using mempool data you can bump up fees during times that the mempool grows in size and pull down fees during times that the mempool is nearly empty. Services that create bitcoin transactions should also set minimum fee thresholds and maximum fee sanity checks, preferably dynamically. If you set a static maximum fee threshold and it becomes obsolete, you may find yourself in an emergency situation where you or your users have to upgrade software because it suddenly becomes impossible to create transactions.
The fee market can be volatile, but over longer time periods it tends to spike and settle in a somewhat predictable range while remaining in an upward channel. At time of writing, low fee transactions paying under 50 satoshis per byte can usually get confirmed over the weekend, though we have noted that as of March sometimes there is no weekend slack.