I think its time to acknowledge that fee rates will go down over time. Thats just the natural way of things anyway, they get cheaper over time or achieve more for the same price.
To stay attractive and increase demand for block space we can't keep these handcuffs on the network that make stuff like BIP47 and other things like 500sat HTLCs too expensive and limit the competitivness of bitcoin compared to other networks, because transacting privately is too expensive and therefore not appealing to the simple user.
I myself am in favor of silent payments over BIP47 or PayNyms and so on, but decreasing their cost would make them more appealing and increase their usage/network effect which would increase demand and create more block space usage which we all profit from in the long run.
Thats just an example it is in general the case that you increase the demand for something by making it cheaper and there is no way around competing for bitcoin to get a significant market share of the transactions in the world. If we get to a point where the exchange rate is so high, that 1sat/vbyte is not worth the benefit people will either move to bitcoin custodians, centralised gateways to miners that take sub 1sat/vbyte transactions which wouldn't propagate through the current network (which we don't want) or move to Visa, PayPal or Shitcoins.
At some point miners will include sub 1sat/vbyte transactions to fill up the blocks with anything that is worth it, as the subsidy goes down. The sad thing would only be if by then it is too late as nobody has any desire to transact on bitcoin anymore. To avoid this we have to react before it happens, afterwards we would have to change to become WAY cheaper, more private and faster to compete with the network effect of the dominant network and that won't be possible without enormous trade offs.
So in the long run we will have to get rid of the dust limit entirely, the minrelayfeerate and most likely increase the block size, but as none of that will happen in the near future. Why don't we start by decreasing the dust limit and minrelayfeerate for example by 50% and let people transact for 0.5 sat/vbyte? Miners won't be incentivized to put 0.9 sat/vbyte transactions in their blocks to make use of the remaining 50KB in their block for some years, as that is not significant in the current case with the subsidy of 6.25 BTC, but we want these transactions to exist at the time when they are needed and they won't if we never change the network to propagate them or they will go straight to the miners (one will at some point see the value in adding 500 transactions which pay "only" 0.9 sat/vbyte each per block).
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments