Author: Raystonn . 2015-07-29 20:23:51
Published on: 2015-07-29T20:23:51+00:00
The author disagrees with the idea that Bitcoin is just another payment technology, saying that it offers more than that. The advantages of Bitcoin include sound money, censorship resistance, personal control over money, and programmable money. These attributes mean that there is no reason to believe that the marginal cost of a transaction can't far surpass that of a PayPal or bank transfer. The author argues that they would personally pay several multiples of the competitors' fees to continue using bitcoin. However, the high cost of transactions could lead to value bleeding out of Bitcoin to alternative blockchains offering lower fees. The author notes that all the properties of Bitcoin are also present in many of the alternative blockchains that exist. Therefore, much like anywhere else where liquidity moves within a system, value will move to the network of least friction. If an artificially imposed limit on transaction rate is attempted, there will never be a high-value settlement network created, as the reality right now is that it's straightforward to move value from Bitcoin to another blockchain with less friction.
Updated on: 2023-06-10T04:19:58.988046+00:00