--- title: "Meaning & Key Takeaway of: Transaction fees are calculated based on…" description: "\"“Transaction fees are calculated based on the size of the transaction in kilobytes, not the value of the transaction in bitcoin. Overall,”\" — Andreas M..." image: "https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg" --- # Transaction fees are calculated based on the size of the… ![“Transaction fees are calculated based on the size of the transaction in kilobytes, not the value of the transaction in bitcoin. Overall,” quote by Andreas M. Antonopoulos](https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg) [Download](https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg) [Open image](https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg) > ““Transaction fees are calculated based on the size of the transaction in kilobytes, not the value of the transaction in bitcoin. Overall,”” [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Transaction fees depend on data size, not monetary value, emphasizing network resource usage over transaction amount. **In simple terms:** Fees are based on transaction size, not bitcoin amount. Key Takeaway Consider transaction size when budgeting fees. Themes cryptocurrency fees network resources Mood analytical practical Type informational technical When to use this quote - sending payments - wallet management - fee estimation Key Concepts data size transaction cost bitcoin Questions to Reflect On - How does transaction size affect fee strategy? - Can you reduce size to lower fees? A Different Perspective Large transactions may still be costly despite low value. ★ ★ ★ ★ ★ No ratings yet [Currency](https://sms4smile.com/quotes/about/currency/) ## Related quotes > [“The higher fee is not because Eugenia is spending more money, but because her transaction is more complex and larger in size — the…](https://sms4smile.com/quotes/andreas-m-antonopoulos/the-higher-fee-is-not-because-eugenia-is-spending-more-money-but/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [Digital assets, including bitcoin, could save small businesses substantial transaction fees and provide an added layer of security to their payment processing.](https://sms4smile.com/quotes/perianne-boring/digital-assets-including-bitcoin-could-save-small-businesses/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Bitcoin was created with security in mind. The Blockchain is Bitcoin's public ledger that records every transaction in the Bitcoin economy.](https://sms4smile.com/quotes/perianne-boring/bitcoin-was-created-with-security-in-mind-the-blockchain-is-bitcoin-s/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [“In the very first recorded transaction of Bitcoin for United States dollars, Martti sent NewLibertyStandard 5,050 Bitcoins to use for seeding the new exchange.…](https://sms4smile.com/quotes/nathaniel-popper/in-the-very-first-recorded-transaction-of-bitcoin-for-united-states/) [Nathaniel Popper](https://sms4smile.com/quotes/author/nathaniel-popper/) > [“Deterministic, or “seeded,” wallets are wallets that contain private keys that are all derived from a common seed, through the use of a one-way…](https://sms4smile.com/quotes/andreas-m-antonopoulos/deterministic-or-seeded-wallets-are-wallets-that-contain-private-keys/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Although the Bitcoin Core client includes a Type-0 wallet, using this wallet is discouraged by developers of Bitcoin Core.”](https://sms4smile.com/quotes/andreas-m-antonopoulos/although-the-bitcoin-core-client-includes-a-type-0-wallet-using-this/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Bitcoin reaches consensus every 10 minutes about the state of the ledger as it existed in the past.”](https://sms4smile.com/quotes/andreas-m-antonopoulos/bitcoin-reaches-consensus-every-10-minutes-about-the-state-of-the/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Fortunately, bitcoin also creates the incentives to improve computer security. Whereas previously the risk of computer compromise was vague and indirect, bitcoin makes these…](https://sms4smile.com/quotes/andreas-m-antonopoulos/fortunately-bitcoin-also-creates-the-incentives-to-improve-computer/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“The concept of a balance is created by the wallet application. The wallet calculates the user’s balance by scanning the blockchain and aggregating the…](https://sms4smile.com/quotes/andreas-m-antonopoulos/the-concept-of-a-balance-is-created-by-the-wallet-application-the/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [If you do more than your share you'd better want to: otherwise, you're paying yourself in a currency recognized nowhere else.](https://sms4smile.com/quotes/james-richardson/if-you-do-more-than-your-share-you-d-better-want-to-otherwise-you-re/) [James Richardson](https://sms4smile.com/quotes/author/james-richardson/) > [I'm not in the business of bayoneting the wounded. I feel the blockchain revolution is kind of my victory. I don't care whether I…](https://sms4smile.com/quotes/patrick-m-byrne/i-m-not-in-the-business-of-bayoneting-the-wounded-i-feel-the/) [Patrick M. Byrne](https://sms4smile.com/quotes/author/patrick-m-byrne/) > [The bitcoin network is not a payments network and it is not a scaling network.](https://sms4smile.com/quotes/sam-bankman-fried/the-bitcoin-network-is-not-a-payments-network-and-it-is-not-a-scaling/) [Sam Bankman-Fried](https://sms4smile.com/quotes/author/sam-bankman-fried/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Most paper money initially existed as a substitute for gold. That's what gave it value. But right now what gives a currency value is…](https://sms4smile.com/quotes/peter-schiff/most-paper-money-initially-existed-as-a-substitute-for-gold-that-s/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [A man walks down the street. It's a street in a strange world. Maybe it's the third world. Maybe it's his first time around.…](https://sms4smile.com/quotes/paul-simon/a-man-walks-down-the-street-it-s-a-street-in-a-strange-world-maybe-it/) [Paul Simon](https://sms4smile.com/quotes/author/paul-simon/) ## More by Andreas M. Antonopoulos > [“Six and a half billion people on this planet have no connection to the world of money. They operate in cash-based societies with very…](https://sms4smile.com/quotes/andreas-m-antonopoulos/six-and-a-half-billion-people-on-this-planet-have-no-connection-to/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“As the adage of the entire internet once went, “I just replaced your entire industry with 100 lines of Python code,” that’s exactly what…](https://sms4smile.com/quotes/andreas-m-antonopoulos/as-the-adage-of-the-entire-internet-once-went-i-just-replaced-your/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“The concept of a balance is created by the wallet application. The wallet calculates the user’s balance by scanning the blockchain and aggregating the…](https://sms4smile.com/quotes/andreas-m-antonopoulos/the-concept-of-a-balance-is-created-by-the-wallet-application-the/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Fortunately, bitcoin also creates the incentives to improve computer security. Whereas previously the risk of computer compromise was vague and indirect, bitcoin makes these…](https://sms4smile.com/quotes/andreas-m-antonopoulos/fortunately-bitcoin-also-creates-the-incentives-to-improve-computer/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“If an UTXO is larger than the desired value of a transaction, it must still be consumed in its entirety and change must be…](https://sms4smile.com/quotes/andreas-m-antonopoulos/if-an-utxo-is-larger-than-the-desired-value-of-a-transaction-it-must/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Bitcoin reaches consensus every 10 minutes about the state of the ledger as it existed in the past.”](https://sms4smile.com/quotes/andreas-m-antonopoulos/bitcoin-reaches-consensus-every-10-minutes-about-the-state-of-the/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Although the Bitcoin Core client includes a Type-0 wallet, using this wallet is discouraged by developers of Bitcoin Core.”](https://sms4smile.com/quotes/andreas-m-antonopoulos/although-the-bitcoin-core-client-includes-a-type-0-wallet-using-this/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Deterministic, or “seeded,” wallets are wallets that contain private keys that are all derived from a common seed, through the use of a one-way…](https://sms4smile.com/quotes/andreas-m-antonopoulos/deterministic-or-seeded-wallets-are-wallets-that-contain-private-keys/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“As a best practice, the level-1 children of the master keys are always derived through the hardened derivation, to prevent compromise of the master…](https://sms4smile.com/quotes/andreas-m-antonopoulos/as-a-best-practice-the-level-1-children-of-the-master-keys-are-always/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“the bitcoin network. Bitcoin users communicate with each other using the bitcoin protocol primarily via the internet, although other transport networks can also be…](https://sms4smile.com/quotes/andreas-m-antonopoulos/the-bitcoin-network-bitcoin-users-communicate-with-each-other-using/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“This isn’t about nation-states anymore. This isn’t about who adopts bitcoin first or who adopts cryptocurrencies first, because the internet is adopting cryptocurrencies, and…](https://sms4smile.com/quotes/andreas-m-antonopoulos/this-isn-t-about-nation-states-anymore-this-isn-t-about-who-adopts/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“From now on, if you see a multisig unlocking script, you should expect to see an extra 0 in the beginning, whose only purpose…](https://sms4smile.com/quotes/andreas-m-antonopoulos/from-now-on-if-you-see-a-multisig-unlocking-script-you-should-expect/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“There are a billion people, right now, with access to the internet and feature phones who could use bitcoin as an international wire-transfer service.”](https://sms4smile.com/quotes/andreas-m-antonopoulos/there-are-a-billion-people-right-now-with-access-to-the-internet-and/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“BIP-39 was proposed by the company behind the Trezor hardware wallet and is incompatible with Electrum’s implementation.”](https://sms4smile.com/quotes/andreas-m-antonopoulos/bip-39-was-proposed-by-the-company-behind-the-trezor-hardware-wallet/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“Bitcoin consists of: A decentralized peer-to-peer network (the bitcoin protocol) A public transaction ledger (the blockchain) A set of rules for independent transaction validation…](https://sms4smile.com/quotes/andreas-m-antonopoulos/bitcoin-consists-of-a-decentralized-peer-to-peer-network-the-bitcoin/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) [Explore all 22 Andreas M. Antonopoulos quotes ](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) ## More Currency quotes > [A man walks down the street. It's a street in a strange world. Maybe it's the third world. Maybe it's his first time around.…](https://sms4smile.com/quotes/paul-simon/a-man-walks-down-the-street-it-s-a-street-in-a-strange-world-maybe-it/) [Paul Simon](https://sms4smile.com/quotes/author/paul-simon/) > [Most paper money initially existed as a substitute for gold. That's what gave it value. But right now what gives a currency value is…](https://sms4smile.com/quotes/peter-schiff/most-paper-money-initially-existed-as-a-substitute-for-gold-that-s/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The bitcoin network is not a payments network and it is not a scaling network.](https://sms4smile.com/quotes/sam-bankman-fried/the-bitcoin-network-is-not-a-payments-network-and-it-is-not-a-scaling/) [Sam Bankman-Fried](https://sms4smile.com/quotes/author/sam-bankman-fried/) > [I'm not in the business of bayoneting the wounded. I feel the blockchain revolution is kind of my victory. I don't care whether I…](https://sms4smile.com/quotes/patrick-m-byrne/i-m-not-in-the-business-of-bayoneting-the-wounded-i-feel-the/) [Patrick M. Byrne](https://sms4smile.com/quotes/author/patrick-m-byrne/) > [If you do more than your share you'd better want to: otherwise, you're paying yourself in a currency recognized nowhere else.](https://sms4smile.com/quotes/james-richardson/if-you-do-more-than-your-share-you-d-better-want-to-otherwise-you-re/) [James Richardson](https://sms4smile.com/quotes/author/james-richardson/) > [“Relationships are the currency of business.”](https://sms4smile.com/quotes/brian-basilico/relationships-are-the-currency-of-business/) Brian Basilico > [The spectacle of a great, solvent government paying a fictitious price for gold it did not want and did not need and doing it…](https://sms4smile.com/quotes/garet-garrett/the-spectacle-of-a-great-solvent-government-paying-a-fictitious-price/) [Garet Garrett](https://sms4smile.com/quotes/author/garet-garrett/) > [I had been exposed to bitcoin early. I thought the consumer application of it felt, to me, further away. I thought there would be…](https://sms4smile.com/quotes/brad-garlinghouse/i-had-been-exposed-to-bitcoin-early-i-thought-the-consumer/) [Brad Garlinghouse](https://sms4smile.com/quotes/author/brad-garlinghouse/) > [This is not really currency that circulates. It's like the old joke about expensive vintage wine. Wine prices will go up and once in…](https://sms4smile.com/quotes/michael-hudson/this-is-not-really-currency-that-circulates-it-s-like-the-old-joke/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [This separation was absolute in our original Republic. But the sky-godders do not give up easily. In the 1950s they actually got the phrase…](https://sms4smile.com/quotes/gore-vidal/this-separation-was-absolute-in-our-original-republic-but-the-sky/) [Gore Vidal](https://sms4smile.com/quotes/author/gore-vidal/) > [As far as income goes, there are three currencies in the world; most people ignore two. The three currencies are time, income and mobility,…](https://sms4smile.com/quotes/tim-ferriss/as-far-as-income-goes-there-are-three-currencies-in-the-world-most/) [Tim Ferriss](https://sms4smile.com/quotes/author/tim-ferriss/) > [The euro is not a currency. It is a political weapon to force countries to implement the policies decided by the E.U. and keep…](https://sms4smile.com/quotes/marine-le-pen/the-euro-is-not-a-currency-it-is-a-political-weapon-to-force/) [Marine Le Pen](https://sms4smile.com/quotes/author/marine-le-pen/) > [“Key Points: ● Transparency - Blockchain offers significant improvements in transparency compared to existing record keeping and ledgers for many industries. ● Removal of…](https://sms4smile.com/quotes/mark-gates/key-points-transparency-blockchain-offers-significant-improvements-in/) Mark Gates > [In 2008, Bitcoin was mysteriously introduced to the world in an obscure, technical paper written under the pseudonym Satoshi Nakamoto. By late 2013, the…](https://sms4smile.com/quotes/steve-hanke/in-2008-bitcoin-was-mysteriously-introduced-to-the-world-in-an/) [Steve Hanke](https://sms4smile.com/quotes/author/steve-hanke/) [Browse all 1,256 Currency quotes ](https://sms4smile.com/quotes/about/currency/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Transaction fees are calculated based on the size of the transaction in kilobytes, not the value of the transaction in bitcoin. Overall,”", "creator": { "@type": "Person", "name": "Andreas M. Antonopoulos" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/andreas-m-antonopoulos/transaction-fees-are-calculated-based-on-the-size-of-the-transaction/", "about": { "@type": "Thing", "name": "Currency" }, "@id": "https://sms4smile.com/quotes/andreas-m-antonopoulos/transaction-fees-are-calculated-based-on-the-size-of-the-transaction/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg", "contentUrl": "https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg", "url": "https://sms4smile.com/quotes/i/da5/andreas-m-antonopoulos-25953_currency_transaction-fees-are-calculated-based-on_150503.jpg", "width": 1080, "height": 1080, "caption": "“Transaction fees are calculated based on the size of the transaction in kilobytes, not the value of the…” — Andreas M. Antonopoulos", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Andreas M. Antonopoulos", "item": "https://sms4smile.com/quotes/author/andreas-m-antonopoulos/" }, { "@type": "ListItem", "position": 4, "name": "“Transaction fees are calculated based on...", "item": "https://sms4smile.com/quotes/andreas-m-antonopoulos/transaction-fees-are-calculated-based-on-the-size-of-the-transaction/" } ], "@id": "https://sms4smile.com/quotes/andreas-m-antonopoulos/transaction-fees-are-calculated-based-on-the-size-of-the-transaction/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```