It is not surprising to learn some Bitcoin exchanges are charging withdrawal fees. Companies such as Coinbase have done so in the past. It now appears the Mexican Bitso exchange will charge a fee as well. With the growing Bitcoin network fees, it is no longer feasible for companies to pay these costs themselves. This will not necessarily affect the popularity of Bitcoin, though.
Bitso Withdrawal Fees Are Coming
For Bitcoin exchanges, reducing overhead costs is always a big priority. Doing so is not all that easy, though. In some cases, companies have to make some very unpopular decisions. In the case of Bitso, that decision comes in the form of introducing Bitcoin withdrawal fees.As of right now, this fee is 0.0005 BTC, or US$0.84 at current prices. It is quite a steep amount, although it is in line with the average network transaction fee.
Transferring the withdrawal cost to the users is not a popular decision. A lot of people will not be happy with this change, even though it is the best option for the company. It is worth noting the withdrawal fee is added to the withdrawal amount. Other companies sue a dynamic pricing solution to provide some flexibility. However, a flat withdrawal fee ensures there is no confusion whatsoever.
It is becoming rather common for exchanges to charge customers to withdraw funds. One could argue this is exactly what banks are doing these days. Then again, exchanges are custodial services providing a conversion gateway from currency to currency. It is only normal they charge customers when they want to move their money out again. If the Bitcoin price continues to go up, this 0.0005 BTC fee will become quite steep, though.
It is evident something will need to change to address these mounting overall network fees. Bitcoin users are not too happy with the way things are going. Scaling Bitcoin is still a good way to alleviate most of these concerns. That will not happen overnight, though, as this debate has gone on for far too long already. For novice users, all of these extra fees will dissuade them to use Bitcoin in the first place. That is not a positive development by any means.
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