guadalupeleopard
Posts: 1
Joined: Sat Oct 26, 2019 11:19 am

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About fees.

Sun Oct 27, 2019 6:03 am

Bitcoin higher fees may or may not kill the currency, it is true I don't want to spend my bitcoins but when I decided to do it I sure I want to do it as cheap as possible, just because people don't want to use their holdings is no reason to say that Bitcoin is a store of value, it only means owner will spend it that the moment of their chosing.

Bitcoin fees the lowest I have seen them is 1 sat/b which is about 1 to 2 pennies, Lightning Network is supposed to help Bitcoin scale without increasing the block size limit. But if the 1mb block size limit is not increase than Bitcoin is done for and the only thing you need to wait is for a fee increase.

Lightning Network has something call commit fee which will eat the liquidity of your channel, example you may had opened a channel for 0.001 at the opening fee was 0.00001, some months have gone by and now the fees are around 0.0005 or more, the commit fee in you LN channel now will be 0.0005 and you won't be able to spend the other half because it will be reserved for when you or the other party closes the channel.

The only solution at the moment is to open bigger channels just to be sure or have enough room and have enough utility out of your channel.

By this making the opening of channels a problem for people with less money than you, a person that makes $2 a day will need to put about $10 to open a channel for 0.001 and if his channel will lose half the capacity is like he is losing half his money. The only solution will be for poor people today and in the future to use custodian wallets. Bitcoin can't bank the unbank if fees could increase not even to $0.10 the most that a tx in Bitcoin should cost is 1 penny no more, otherwise it can't fullfil its mission which is become the money of the world.

Bitcoin BTC on-chain is cost prohibited and Lightning Network it is as well.

Bitcoin Cash at the moment is cheap because the price is below $300, but Bitcoin Cash must tried to reduce this fee even lower to become the money of the future.

The price of Bitcoin Cash has to be around 1 to 10 satoshi in total to become the world reserve currency.

Once Bitcoin Cash implements even lower fees without compromising security you can be sure that it will be worth what $100m can buy today for each coin.

I understand that right now is pretty low but it needs to be lower, the price of less than 10 satoshis won't happen within the next 2 years but that will be the correct way to address fees. Otherwise Bitcoin Cash will just risk becoming another Bitcoin core with high fees but different names.

Bitcoin Cash has to become as cheap as Lightning Network and as fast as Lightning Network. With avalanche zero confirmation will become the killer development against LN than we can start thinking how to lower fees to LN level as well.

:D

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