110 sats \ 23 replies \ @NULLPOINTER OP 10 Dec 2023 \ parent \ on: deleted by author bitcoin
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I don’t think having a developing fee market is a weakness. This is literally how the security of the chain will be paid for in the future.
I do agree that Ordinals are an attack on the usability of the chain. Smarter people than I will have to contend with that issue, hopefully without censorship.
If I didn’t know any better I’d say that Ordinals token that got listed on Binance is being used to fund this bullshit.
Bitcoin is in the “then they fight you” phase. Along with hostile governments, unfortunately there are billions of dollars worth of shitcoins out there with a vested interest in destroying Bitcoin, because as long as Bitcoin is successful, their VC funded shitcoin of choice solves exactly 0 problems. Ordinals (includes BRC-20 garbage) are an obvious attack on the usability of the chain and the fungible nature of Bitcoin.
We have a workaround, though. Use lightning.
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The plan from the beginning was for tx fees to replace block subsidies on layer 1.
Fees on layer 1 for a standard transaction are $3.50 (58 sat/vbyte) at the time of this post.
Lightning fees are 1sat for every 1m sats sent/received.
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I don't know if pricing people out of being able to use Bitcoin as the transaction fees rise was intended. I think the unsaid assumption is that fiat value will rise enough to make the amount of Bitcoin spent in tx fees more reasonable.
That wasn't my assumption
My assumption was: in 95% of cases, bank cards and cash work well enough
In the other 5% of cases, bitcoin's base layer works well enough
If someone wants you to pay them a small amount, e.g. to buy food for your family, that transaction is not in the 5%
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The feerates are denominated in bitcoin, so value of fees and UTXO value rise and fall in tandem. To be less susceptible, you need to either have more blockspace-efficient UTXOs (i.e. reduce the amount of blockspace you need to bid on when you send a transaction) or collect more money in fewer UTXOs, so that fees are a smaller proportion of the total amount---preferably both.
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New users with small amounts should start on lightning.
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Yes.
Self custodial wallets like blixt have hosted channels (dunder) where you can receive up to 400k sats.
Then there are custodial LN wallets like coinos.io
On chain is more secure, LN for purchasing with instant settlement
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Bitcoin is about consistent learning for all of us. Usually what happens is you run into a problem and then find out something new about how bitcoin works.
You are now finding out that having small UTXO's on chain is a bad practice. BTW you can still spend it. Just set a low TX fee & wait a few weeks/months.
As an "uncle Jim" holding friends & families bitcoin you need to know more about all this. Make use of lightning & even liquid to consolidate in future.
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If there is a price on something, there are people being priced out.
Everything you buy is permissioned. That includes block space.
On-chain bitcoin is not for everyone. It's only for those who can pay the fees. If you can't, use custodial solutions or Liquid with Boltz for lightning payments.
When considering using Bitcoin, you should think about the UTXO size required to transact when fee rates are at 500 sat/vd or 1,000 sat/vb and revisit it as fees go up.
Check this article by Unchained.
https://unchained.com/blog/small-utxo-bitcoin-dust/
Block space is limited and with more users and use cases, the costs of transacting on-chain will keep going up and more and more people will be pushed out of the Bitcoin Network.
It's not a weakness. Limited resource and high demand pushes price up. That's own it works.
For people who can't afford on-chain fees, federated solutions (Liquid, Fedimint) and other custodial solutions (Wallet of Satoshi, Blink, ecash) are how they can use bitcoin.
Custodial Bitcoin is not for everyone and people should stop pushing everyone to get a Coldcard and self-custody. It's great at 1 sat/vb but can be a disaster at 500 sat/vb.
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As I understand you are holding BTC on chain for your friends & family right? You got them to send it to you in $10 or $50 UTXO'S yeah?
Thats bad practice!
Let me repeat....if you want to send small TX do it on lightning. Its that simple. Please learn more about the different tools available on bitcoin so you can onboard friends & family in more productive ways.
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You cannot use fiat currency to define the value of Bitcoin. If the value of fiat currency were zero, then even 1 sat would be infinite.
But obviously Bitcoin won't be infinite, so maybe you can exchange other useful items for fees.
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It takes time to learn Bitcoin. Most people just apply their past knowledge to Bitcoin, but that doesn't mean anything. People can only ask and get answers, or work hard to find knowledge on their own. I think this is a necessary process for growth. Learning about money takes time. Most people unconsciously spend more than ten years learning the concept of money.
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