[Ethereum] How do Ethereum’s transaction fees compare to Bitcoin


Ethereum has faster transactions than the 10 minutes of standard bitcoin protocol.
How do the transaction fees compare at the moment if you translate the price into a comparable currency like dollars or euros?
Long-term how are they likely to compare?

Best Answer

Every computation on the Ethereum network cost gas, so do value transfers like on the bitcoin blockchain.

Every computational step, or OPCODE requires a specific amount of gas (which is hardcoded). You pay for gas using ether. To determine the fee you pay you calculate:

required gas * gas price = fee

For example a simple value transfer cost 21000 gas, the current gas price is dynamically set by users and miners and is currently ~0.00000005 ether, so the value transaction would cost ~0.00105 ether or $0.001 to $0.002 USD at current prices. Current BTC transaction fees vary anywhere from $0.01 to $0.09 USD

Users can set the gas price they are willing to pay and and miners can set the minimum gas price they are willing to accept. This creates a dynamic market, which allows ethers "fee" to be dynamic and adopt to ether price swings.

Related Topic