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Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

bitinfocharts.com

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Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#31

Post by rawtxapp »

the_local_host wrote: post #25
rawtxapp wrote: post #22

Earlier quoted context omitted.

In 10 years from now, everyone would have easy to use/intuitive lightning network wallets and all exchanges would have integrated it. Again, no need to keep track of every coffee transaction permanently forever on the blockchain, it's just not efficient.

Why bother settling on the blockchain at all? The second-layer transactions could just float, like the dollar separated from the gold standard.

For sure, you can keep channels open indefinitely. It won't be like dollars separated from gold though, it's still the same exact Bitcoin and the fund gets allocated at the opening of the channel.

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#32

Post by [deleted] »

gruez wrote: post #28
this_user wrote: post #24

Earlier quoted context omitted.

The conundrum at the heart of BTC is that you have to introduce a second layer in order to work around the inherent limitations of the first. But at that point you may as well do away with that first layer, and then will have simply re-invented PayPay, which only goes to show how "blockchain technology" is almost entirely useless.

>But at that point you may as well do away with that first layer, and then will have simply re-invented PayPay, which only goes to show how "blockchain technology" is almost entirely useless. the lightning network isn't going to freeze your funds for 180 days because they think your account is suspicious.

[deleted]

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#33

Post by noxer »

ahelwer wrote: post #7
swinglock wrote: post #5

This is the consequence of the sudden loss of mining power. The increased usage of Bitcoin transactions while the blockchain is now processing fewer transactions means the fees increase, because users are willing to pay that much to transact faster. Ideally market powers would offset this by people with spare CPU time beginning to mine to pick up the slack, since profitability is up. However due to the development of…

Here's a gap in my understanding: why does bitcoin mining explode so much when the price goes up? With all the new miners, doesn't the difficulty adjustment kick in after two weeks and largely negate the price increase? Or does the difficulty scaling not quite work like that?

With the current price large miner make huge profits anyway. Mining a bitcoin on average coasts way way less then its worth so obviously if the price increases the profit does too and the difficultly adjustment doesn't take that all away.

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#34

Post by gruez »

the_local_host wrote: post #25
rawtxapp wrote: post #22

Earlier quoted context omitted.

In 10 years from now, everyone would have easy to use/intuitive lightning network wallets and all exchanges would have integrated it. Again, no need to keep track of every coffee transaction permanently forever on the blockchain, it's just not efficient.

Why bother settling on the blockchain at all? The second-layer transactions could just float, like the dollar separated from the gold standard.

> The second-layer transactions could just float, like the dollar separated from the gold standard.

You can't mint more bitcoins on the lightning network. There's a 1:1 relation between what's on the lightning network and what's on the blockchain. This is as opposed to fiat (zero relation, currency units can be generated at will), or gold standard in practice (the central bank only having enough gold for a fraction of the notes issued to be redeemed).

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#35

Post by [deleted] »

rawtxapp wrote: post #31
the_local_host wrote: post #25

Earlier quoted context omitted.

Why bother settling on the blockchain at all? The second-layer transactions could just float, like the dollar separated from the gold standard.

For sure, you can keep channels open indefinitely. It won't be like dollars separated from gold though, it's still the same exact Bitcoin and the fund gets allocated at the opening of the channel.

[deleted]

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#37

Post by [deleted] »

gruez wrote: post #34
the_local_host wrote: post #25

Earlier quoted context omitted.

Why bother settling on the blockchain at all? The second-layer transactions could just float, like the dollar separated from the gold standard.

> The second-layer transactions could just float, like the dollar separated from the gold standard. You can't mint more bitcoins on the lightning network. There's a 1:1 relation between what's on the lightning network and what's on the blockchain. This is as opposed to fiat (zero relation, currency units can be generated at will), or gold standard in practice (the central bank only having enough gold for a fraction o…

[deleted]

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#38

Post by nivexous »

gruez wrote: post #23
haolez wrote: post #16

I wonder what would happen with bigger blocks besides making the blockchain use more disk space. We have BCH and BSV to compare, but not in BTC's scale, I believe.

initially? lower fees. eventually it will be offset by the induced demand and we'll be back to square one.

By that argument, we should have capped Internet bandwidth at 56kbps.

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#39

Post by devname »

haolez wrote: post #16

I wonder what would happen with bigger blocks besides making the blockchain use more disk space. We have BCH and BSV to compare, but not in BTC's scale, I believe.

Bitcoin Cash has handled more transactions than small-block core for two months now. https://bitinfocharts.com/comparison/transactions-btc-bch.ht...

Read the first page of the Bitcoin whitepaper: https://www.bitcoin.com/bitcoin.pdf.

It's a protest against fees and intermediaries. Now we see BTC claim to be Bitcoin, but it is crippled by high fees and custodial intermediaries.

Re: Avg. Transaction Fee of Bitcoin Surpassed the Peak from 2017

#40

Post by UncleMeat »

gruez wrote: post #34
the_local_host wrote: post #25

Earlier quoted context omitted.

Why bother settling on the blockchain at all? The second-layer transactions could just float, like the dollar separated from the gold standard.

> The second-layer transactions could just float, like the dollar separated from the gold standard. You can't mint more bitcoins on the lightning network. There's a 1:1 relation between what's on the lightning network and what's on the blockchain. This is as opposed to fiat (zero relation, currency units can be generated at will), or gold standard in practice (the central bank only having enough gold for a fraction o…

Sure you can. Just mint some "lightnings" and move on. Nothing stops a large centralized processor from creating its own coin.

L2 is also shit for actual distribution and censorship resistance. Imagine a future where BTC is 100x the current price and the people who got in early are rich as heck and nobody else can afford even a single transaction and must instead rely entirely on L2 services, never actually owning their own wealth.

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