Oddbean new post about login | logout 😂 I think for sure that fees nominated in sats will increase too. The level of privilege it is to write to L1 bitcoin is unfathomable, and the scarcity of block space is not well understood.
I really hope we develop fantastic L2/3 options for the average person as that’s what Bitcoin is to me, sound money for all globally
Only L1 will have pristine and uncompromising soundness. We will have to accept trade-offs in scaling, and there’s nothing wrong with that.
Absolutely , but for most L1 will be too expensive for smaller savings so as you say trade offs. People will leave on exchanges sadly
In a hyperbitcoinized world I expect the banks, other large corps, and nation states will dominate block space on L1. Wealthy bitcoiners will still transact there but regular folks won't. Custodial L2 services will be the way for most people. The only significant difference between this banking system 2.0 and the legacy system will be the hard cap on the money supply, and that the Bitcoin network will make fractional reserve banking impossible because the network will not allow you to send out more money than you have. The people will benefit from saving in a deflationary currency.
In my vision L2s like LN are also self sovereign and moving to that layer will happen through (semi) trusted entities that consolidate btc from several entities and move them all together in and out L2s, which should reduce fees for the individual massively
newbie’s question….doesn't liquid represent an acceptable trade-off?
100% on Target