zforce on Nostr: Well let’s do some math again Let’s assume 3,000 transactions a block. All these ...
Well let’s do some math again
Let’s assume 3,000 transactions a block. All these transactions are legitimate, with the value of 0.01 Bitcoin (1,000,000 sats, $230 USD) and they are all willing to pay a 5% fee to get confirmed. This fee is high, but still well within the realm of usable, as credit cards and banks regularly charge this to customers and businesses.
That would mean there would be legitimate block fees of $34,500 and an attacker would need to make a $34,501 fee transaction to bump every single other transaction to the next block.
If this took place, there would certainly be damage to the on-chain transaction economy, but mining would also become roughly 30% more profitable and hash would jump 50% higher. The demand for lightning would no longer be out of convenience but would instead be necessity, and people would pay even higher than 5% fees to open channels and be able to conduct practically infinite zero fee peer to peer L2 transactions.
Every year this attack would cost 1.8B dollars, which would have to be spent in BITCOIN, not dollars, which means the government would effectively be providing a 2 Billion dollar subsidy to Bitcoin miners and constant demand pressure for Bitcoin, skyrocketing price. In fact, price would be the release value for fees too, as the higher cost of transacting can easily be made up for by a higher overall Bitcoin price. If it cost me a 5% fee to send my Bitcoin to coin base and sell, I may not sell it when I otherwise would have. The people who buy Bitcoin religiously out of need for freedom are price insensitive and would bid even at 60k+ (as we’ve seen)
At the end of all this, you would have
- wasted billions of taxpayer dollars
- Incentivized Bitcoin mining
- Increased L2 demand and transaction volumes
All to clog up the mempool with Jpegs or useless data which gets you nowhere?
Huge waste of everyone’s time and arguably a net positive which would increase price and even potentially adoption
Bitcoin is anti-fragile
Let’s assume 3,000 transactions a block. All these transactions are legitimate, with the value of 0.01 Bitcoin (1,000,000 sats, $230 USD) and they are all willing to pay a 5% fee to get confirmed. This fee is high, but still well within the realm of usable, as credit cards and banks regularly charge this to customers and businesses.
That would mean there would be legitimate block fees of $34,500 and an attacker would need to make a $34,501 fee transaction to bump every single other transaction to the next block.
If this took place, there would certainly be damage to the on-chain transaction economy, but mining would also become roughly 30% more profitable and hash would jump 50% higher. The demand for lightning would no longer be out of convenience but would instead be necessity, and people would pay even higher than 5% fees to open channels and be able to conduct practically infinite zero fee peer to peer L2 transactions.
Every year this attack would cost 1.8B dollars, which would have to be spent in BITCOIN, not dollars, which means the government would effectively be providing a 2 Billion dollar subsidy to Bitcoin miners and constant demand pressure for Bitcoin, skyrocketing price. In fact, price would be the release value for fees too, as the higher cost of transacting can easily be made up for by a higher overall Bitcoin price. If it cost me a 5% fee to send my Bitcoin to coin base and sell, I may not sell it when I otherwise would have. The people who buy Bitcoin religiously out of need for freedom are price insensitive and would bid even at 60k+ (as we’ve seen)
At the end of all this, you would have
- wasted billions of taxpayer dollars
- Incentivized Bitcoin mining
- Increased L2 demand and transaction volumes
All to clog up the mempool with Jpegs or useless data which gets you nowhere?
Huge waste of everyone’s time and arguably a net positive which would increase price and even potentially adoption
Bitcoin is anti-fragile