Joe on Nostr: This is the one thing I think BTC has a weakness in the long term. Imagine if there ...
This is the one thing I think BTC has a weakness in the long term.
Imagine if there were no new BTC rewards here in 100 years.
From this point on, mining has to live on fees. But here comes the one problem. There is a maximum number of transactions that will be confirmed every 10 minutes.
If fees are higher, users will have to use other BTC layers and will not be able to operate on the main network. Big players (banks) will use the main layer because they don't care about transaction costs. So people have to move to the second or third layer of BTC. The fee will ve slowly reduced to the 1 sat. 1 sat fee is like a magnet FOREVER. Every time fees go up, that means more people want to use the network but they can't. This could be BTC’s potential riskpoint.
I hope my thoughts are somehow wrong.
Sorry for the bad explanation 😅
Can you follow my thoughts?
What is your opinion on this?
Imagine if there were no new BTC rewards here in 100 years.
From this point on, mining has to live on fees. But here comes the one problem. There is a maximum number of transactions that will be confirmed every 10 minutes.
If fees are higher, users will have to use other BTC layers and will not be able to operate on the main network. Big players (banks) will use the main layer because they don't care about transaction costs. So people have to move to the second or third layer of BTC. The fee will ve slowly reduced to the 1 sat. 1 sat fee is like a magnet FOREVER. Every time fees go up, that means more people want to use the network but they can't. This could be BTC’s potential riskpoint.
I hope my thoughts are somehow wrong.
Sorry for the bad explanation 😅
Can you follow my thoughts?
What is your opinion on this?