<p>The relation between <code>average transaction size</code> and <code>average transaction fee</code> is not linear. </p>

<blockquote>
  <p>Are people still falling for bad fee prediction algorithms?</p>
</blockquote>

<p>There are no <code>good</code> prediction algorithms here. Think about 110 people waiting for  a bus, but the bus has only 100 seats. </p>

<blockquote>
  <p>Is there an increased demand for quickly-confirming transactions?</p>
</blockquote>

<p>I don't think so. Most of users do not care at all about transaction fees while their capital grows.</p>

CC BY-SA 3.0
2017-10-13T22:16:19.147Z
I guess this might help explain it: https://blockchain.info/charts/avg-block-size?timespan=1year . A year ago, we simply weren't hitting the max block size. Now we're regularly bumping up against it.
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CC BY-SA 3.0
2017-10-13T11:12:14.837Z
2017-10-13T11:12:14.837Z
amaclin
<p>Now that segwit transactions are consistently making up <a href="http://segwit.party/charts/" rel="nofollow noreferrer">10% of each block</a> and the witness section is making up more than 6% of the block, I'm a little confused by why median transaction fees are still high. A year ago, there were about <a href="https://bitinfocharts.com/comparison/bitcoin-transactions.html#1y" rel="nofollow noreferrer">230k transactions/day</a> and now there are about 260k transactions/day - just a 13% increase. But fees are <a href="https://bitinfocharts.com/comparison/bitcoin-median_transaction_fee.html#1y" rel="nofollow noreferrer">up 1400%</a> since a year ago.</p>

<p>What's causing fees to remain high even tho we've increased capacity by 6% (and rising) and only have 13% more transactions? Are people still falling for bad fee prediction algorithms? Is there an increased demand for quickly-confirming transactions? </p>

<transaction-fees>
Why are median transaction fees so much higher now (in october 2017) than a year ago?
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# Why are median transaction fees so much higher now (in october 2017) than a year ago?

(Asked by: username_0 on 2017-10-12)

Now that segwit transactions are consistently making up [10% of each block](http://segwit.party/charts/) and the witness section is making up more than 6% of the block, I'm a little confused by why median transaction fees are still high. A year ago, there were about [230k transactions/day](https://bitinfocharts.com/comparison/bitcoin-transactions.html#1y) and now there are about 260k transactions/day - just a 13% increase. But fees are [up 1400%](https://bitinfocharts.com/comparison/bitcoin-median_transaction_fee.html#1y) since a year ago.

What's causing fees to remain high even tho we've increased capacity by 6% (and rising) and only have 13% more transactions? Are people still falling for bad fee prediction algorithms? Is there an increased demand for quickly-confirming transactions?

**Tags:** transaction-fees


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## 1 answers

### Answer by username_1 on 2017-10-13. Score: 2

The relation between `average transaction size` and `average transaction fee` is not linear.

> Are people still falling for bad fee prediction algorithms?

There are no `good` prediction algorithms here. Think about 110 people waiting for a bus, but the bus has only 100 seats.

> Is there an increased demand for quickly-confirming transactions?

I don't think so. Most of users do not care at all about transaction fees while their capital grows.

> **Comments:**
> **username_0**: I guess this might help explain it: https://blockchain.info/charts/avg-block-size?timespan=1year . A year ago, we simply weren't hitting the max block size. Now we're regularly bumping up against it.  

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