Author: Jorge Timón 2015-07-30 15:41:30
Published on: 2015-07-30T15:41:30+00:00
In a discussion on bitcoin-dev mailing list, Jorge Timón explained that even if the Lightning Network was never developed and block size remained at 1 MB forever, fees would still be competitive with non-decentralized payment systems that have proportional fees. In response, Thomas Zander raised concerns about Bitcoin being outcompeted and replaced or otherwise regarded as worthless if there is such a low availability of transaction space that paying to be included costs $10. However, Jorge Timón argued that rational economic actors would prefer to pay $10 over $11 in fees and gave an example of how $10 flat fee is cheaper than 1% fees for any transacted amount greater than $1000. He also clarified that this was just an extreme example to make his point and hopefully fees will never rise to a value as high as $10.
Updated on: 2023-06-10T04:17:44.832408+00:00