Bitcoin fee estimation can be very tricky. Someone paid 34,146 sat/vB for a transaction - $1,222 ?!?!?
https://mempool.space/tx/3fd32ef4d95c12c88238a2c1e850a16af1c204863803ae76fa54d1c855064bb6
Why would anyone overpay by so much.
I took a deeper dive and discovered it was a CPFP transaction pulling a 2.8sat/vB transaction along. So effectively they paid 52.8 sat/vB, which is about right for the fee at the time.
What's CPFP? It's child pays for parent - a fee bumping technique that allows you to add extra sats to a fee for a transaction (child) that depends upon the original transaction (parent) and thereby get transactions in a block sooner.
Miners look for combinations of transactions where even if a given transaction has a low fee, by including it and higher fee transactions that depend on the 'parent' low fee transaction they can earn more total fees.
So much to learn about Bitcoin!!!
#bitcoin #bitcoinfees #mempool #cpfp #rbf
Jesse Markowitz / Jesse
npub1za…sgre0
2023-05-19 12:44:58
Author Public Key
npub1za3kr3ndst5kdvxnvue4r7pyaf2tl0az9zqwr786a9aruvhf7cpqpsgre0Published at
2023-05-19 12:44:58Event JSON
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"pubkey": "176361c66d82e966b0d3673351f824ea54bfbfa22880e1f8fae97a3e32e9f602",
"created_at": 1684500298,
"kind": 1,
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"content": "Bitcoin fee estimation can be very tricky. Someone paid 34,146 sat/vB for a transaction - $1,222 ?!?!?\n https://mempool.space/tx/3fd32ef4d95c12c88238a2c1e850a16af1c204863803ae76fa54d1c855064bb6\n\nWhy would anyone overpay by so much.\n\nI took a deeper dive and discovered it was a CPFP transaction pulling a 2.8sat/vB transaction along. So effectively they paid 52.8 sat/vB, which is about right for the fee at the time.\n\nWhat's CPFP? It's child pays for parent - a fee bumping technique that allows you to add extra sats to a fee for a transaction (child) that depends upon the original transaction (parent) and thereby get transactions in a block sooner.\n\nMiners look for combinations of transactions where even if a given transaction has a low fee, by including it and higher fee transactions that depend on the 'parent' low fee transaction they can earn more total fees. \n\nSo much to learn about Bitcoin!!!\n\n#bitcoin #bitcoinfees #mempool #cpfp #rbf \n",
"sig": "eb717df964a24ef6e756742e66b34b2b59eab42b8df4e162b0b9b7028697e2bc2dbecb25e2eca30612ba998348dbdc57ddecb93f3b46b0d04eb6d79264c2a2b9"
}