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Since the fees are high today, when more wallets and people start using segwit (bc1) addresses. Would sending from legacy address fees go down as everyone is using the newer address? Or it doesnt matter?

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Transactions which spend from segwit outputs (i.e. "send from" segwit addresses) will have less weight (as in block weight) than transactions which spend from non-segwit outputs. This means that to reach the block weight limit, blocks will need to include more transactions. This effectively means that there will be more block space for more transactions. Since more transactions can be included per block, the transaction fees in general will decrease.

So yes, when segwit is widely deployed and if it is used in all transactions, the transaction fees will likely be lower.

  • absolutely wrong logic – amaclin Nov 6 '17 at 17:30
  • What is the correct logic then? – Patoshi パトシ Nov 6 '17 at 18:00
  • The only thing I see wrong is that this doesn't guarantee fees going lower, just that the fees will be lower than if we'd kept the 1mb regular blocksize. Other than that the logic seems fine to me. – Gaspa79 Nov 6 '17 at 20:34
  • @amaclin I'd be interested to understand your reasoning. Would you please explain? – Highly Irregular Nov 7 '17 at 0:45
  • @andrew-chow Despite agreeing with you in the statement lees block weight per transaction implies more transaction per block, and this could indeed make the fees go down, don't you thing that there is also an interest behind fees going up? The should eventually increase to compensate the reduction of block reward at least. – sr-gi Nov 7 '17 at 1:29

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