What are the potential drawbacks of using a high max priority fee per gas in the cryptocurrency industry?

3 answers

• Dec 25, 2021 · 3 years ago
  Using a high max priority fee per gas in the cryptocurrency industry can lead to increased transaction costs for users. This means that individuals who want to send or receive cryptocurrency may have to pay higher fees, which can be a burden, especially for frequent or large transactions. Additionally, high fees can discourage adoption and usage of cryptocurrencies, as users may find it more cost-effective to use traditional payment methods instead.
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• Dec 25, 2021 · 3 years ago
  One potential drawback of using a high max priority fee per gas in the cryptocurrency industry is the possibility of creating a barrier to entry for new users. If the fees are too high, it may deter individuals from getting involved in the cryptocurrency space, limiting its potential for growth and adoption. It is important to strike a balance between incentivizing miners and maintaining an accessible and affordable transaction system for users.
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• Dec 25, 2021 · 3 years ago
  From BYDFi's perspective, while a high max priority fee per gas can incentivize miners to prioritize certain transactions, it may also lead to a less inclusive and decentralized network. Higher fees can favor larger players who can afford to pay more, potentially centralizing power in the hands of a few. This goes against the principles of decentralization that many cryptocurrencies aim to achieve. It is crucial to find a balance that ensures fair participation and distribution of transaction fees within the network.
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