Author: CJP 2015-08-30 17:18:27
Published on: 2015-08-30T17:18:27+00:00
The context discusses the potential impact of blockchain fees on transactions, specifically in relation to a potential fine. The author questions whether the fine is small relative to the blockchain fees, given that a long chain may result in fees in the 1% range. They note that for a moderate-sized payment, such as a $5 coffee worth 20 mBTC, the fee would exceed a 1kB txn fee of .1 mBTC. The author goes on to caution that the present-day exchange rate is not necessarily indicative of what it will be in the future as more users adopt Bitcoin. In a hypothetical scenario where 10 billion people use Bitcoin for all their finances and have 2.1mBTC in savings, the exchange rate could be as high as $4.8 million per BTC. This underscores the potential impact of increasing numbers of users on transaction costs. However, the author notes that Lightning Network offers a more favorable situation than in-blockchain transactions, despite the possibility of increased tx fees with longer route lengths.
Updated on: 2023-05-23T19:33:54.049471+00:00