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0 pointsCryptoPunk5y ago0 comments

My point is that with a limit of 300,000 or so transactions a day, Bitcoin's average transaction fee would need to be extremely high to match even the current security subsidy, much less one communsurate with a global reserve currency.

I don't see any reasonable case for the prediction that Bitcoin's average transaction fee will reach those extreme highs.

>Hard-forking to remove the block size limit would have profound consequences for the decentralized nature of bitcoin - arguably its most important characteristic.

I didn't say "remove". I said "raise".

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beaner5y ago

> I don't see any reasonable case for the prediction that Bitcoin's average transaction fee will reach those extreme highs.

Why not? At scale with current block sizes Bitcoin would probably be settling payments of institutional-level transfers, state money management, and 2nd-layer networks like Lightning. Individual transaction fees would be high but they would represent aggregated fees for millions of off-blockchain transactions.

The fees wouldn't likely be paid by everyday users at that point.

CryptoPunkOP5y ago

Because there is no market demand for it? Why would people pay thousands of dollars to transfer value? Value transfer will get less expensive with the proliferation of e-money, not more. Why would institutional players choose something so expensive?

beaner5y ago

Because it won't be expensive.

Visa does something like $11 trillion in volume per year. Why does anybody use that if visa takes 1-2%?

1% of 11 trillion is 110 billion. With that amount of fee revenue you'd be able to secure the Bitcoin network 12,000 times over.

So Bitcoin's security is able to grow by 1,000x and still cut prices relative to current popular providers by 12x.

That's cheap, not expensive, and that will lead to demand over time.

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0 pointsCryptoPunk5y ago0 comments

I don't see any reasonable case for the prediction that Bitcoin's average transaction fee will reach those extreme highs.

>Hard-forking to remove the block size limit would have profound consequences for the decentralized nature of bitcoin - arguably its most important characteristic.

I didn't say "remove". I said "raise".

0 comments

beaner5y ago

> I don't see any reasonable case for the prediction that Bitcoin's average transaction fee will reach those extreme highs.

The fees wouldn't likely be paid by everyday users at that point.

CryptoPunkOP5y ago

beaner5y ago

Because it won't be expensive.

Visa does something like $11 trillion in volume per year. Why does anybody use that if visa takes 1-2%?

1% of 11 trillion is 110 billion. With that amount of fee revenue you'd be able to secure the Bitcoin network 12,000 times over.

So Bitcoin's security is able to grow by 1,000x and still cut prices relative to current popular providers by 12x.

That's cheap, not expensive, and that will lead to demand over time.

1 more reply

j / k navigate · click thread line to collapse