Can someone please explain to me what I am missing?
I don't see how variable, market-based transaction fees can scale. I go to a merchant's website to buy, how do I select a mining peer to pay transaction fee to? Do I attach some bounty that any peer can earn if that peer wins the Proof-of-Work block? But what if my bounty isn't high enough to attract a peer given high transaction volume competing for priorities? Or not enough to cover any peer's mining overhead. How do I know how much to bid to be sure my transaction completely timely?
This sounds very complex and unreliable and not at all like something that can scale to customers. Customers want to click one button and be done with the purchase and not waiting unknown hours debugging their payment processing. Amazon's One Click.
I don't see how with different peers charging different fees (to match their market dynamics), the sender of a transaction can know the amount to bid to get in the next block? It is impossible because the tx fees are not uniform and the random selection of the next peer is not knowable in advance.