Sender spent threefold to ship me $5 price of BTC through Coinbase – why?

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They’ve additionally supplied me with what gave the impression to be a transaction affirmation stating that they’ve despatched 0.0006 BTC (about $16) to an deal with that isn’t mine.

In a standard transaction, created utilizing a standard self-custodial pockets, That would simply be change being returned to the sender.

It’s the sender who creates the transaction and determines what quantities go the place. This isn’t underneath the management of the recipient.

if Coinbase one way or the other teams a number of transactions into one for some motive

It’s regular for companies that present custodial accounts to batch their buyer’s transactions because it saves the supplier cash in Bitcoin transaction charges.

why its customers must pay triple when sending small quantities?

They in all probability do not, however they in all probability must familiarise themselves with the phrases and circumstances of their settlement with their account supplier. Any difficulty have to be taken up with the enterprise that gives the service they’re utilizing.

It’s the sender who decides the charges. The recipient has no management over charges.


Coinbase

Be aware that Bitcoin was invented in order that one occasion may pay a second occasion with none want for a trusted third occasion. Utilizing a enterprise like Coinbase as a trusted third occasion goes straight towards what Bitcoin’s inventor wished to attain. Bitcoin’s inventor supposed that we use our personal self-custodial (i.e. non-custodial) wallets to take care of our personal money ourselves and to make funds.

A purely peer-to-peer model of digital money would enable on-line
funds to be despatched straight from one occasion to a different with out going by way of a monetary establishment. […] What is required is an digital cost system primarily based on cryptographic proof as an alternative of belief,
permitting any two prepared events to transact straight with one another with out the necessity for a trusted third occasion.

– Satoshi Nakamoto, Bitcoin: A Peer-to-Peer Digital Money System, 2008.


small quantities

Additionally be aware that second layer options just like the Lightning Community (LN) have been created to facilitate micropayments with very low charges and likewise with none want for a trusted third occasion.

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