Oddbean new post about login | logout As the bitcoin price rises, would you expect this $10 fee to remain $10 or would that go to $100 or $1000? Wouldn't that price out average person from layer 1?
as prices rise, the value of the fees goes up. We cannot predict nor calculate a dollar amount, but we can predict and calculate the amount in sats. As the value of the fees goes up, less people will transact, causing the fees to go down to normal levels again. I try to think of it like interest rates, same effect on the volicity of money in a sense. Open to disagreements.
It’s hypothetically $10. That hypothetical $10 million TX costs a lot more if it’s coming from many UTXOs.
Question I keep coming back to is will everyone be able to be self sovereign and hold bitcoin in self custody or will it only be for the elites? If a transaction costs 30k sats today and this remains going forward with prices increasing, you have to maintain a 1M UTXO to be efficient, does layer 1 eventually price out self custody for middle and lower classes? And is it even possible to be self sovereign on layer 2 since you have to open channels on layer 1? I think time will tell, but hoping self sovereignty is for everyone, especially those that need it the most.
It’s certainly an open question. I don’t believe 8 billion people will be able to hold bitcoin in self custody, but 8 billion people don’t all hold any scarce asset right now.
The rate of development is so fast too! I think current state were not there for masses having self custody if prices and fees continue on current trajectory, but stuff like this that mutiny wallet and others are developing certainly continues to help. https://primal.net/e/note13y66pezucap8tjjf80q2mzmc387u6e3jujzk97736lmck972m8ns00s3j7