Do you agree with Francis' premise that higher on-chain fees will push more people to custodial solutions?
Discussion
Gotta just stay focused building out Lightning. The killer experience/use case is coming. Just keep iterating.
The iphone want the first smartphone…
Gotta agree with you. That's the only conclusion I keep coming too, as well. On chain fees are honest in their pricing. Although, ordinal transactions probably have something to do with these insane fees, atm. Just sayin'.
all I know is that we do need to hurry
I can't speak for others but it is true for myself.
Higher fees will make me keep my BTC on custodial wallets rather than on chain.
I don't remember the specifics, so I might be wrong, but sats in a lightning wallet, like WoS, is still custodial even though they are Bitcoins. They are mine, but the node closing down or whatever may prevent me from being able to access those funds.
My practice is to move sats from lightning wallets to my own storage occasionally. Think of it like sats in a lightning wallet is like cash in your wallet that you carry around. you can pay out of it easily and put money in easily. on chain storage is like putting cash in a safe in your home. Not as easy to get money in and out.
So if fees are high, I might not move money as often. Fees will fluctuate and perhaps go up over time. That's natural and expected. I think it is important to understand why it is going up and whether or not those reasons are good for BTC in the long run.
Yes.
Lightning is already mainly custodial anyway
Custodial for spending, on chain for saving. When things like Fedimint become reality the custodianship can be on a much smaller scale within the circle of trust (friends, family etc). Quoting #[2] , you know who to punch in the face when the custodian runs away with your money. With things like WoS rug pulls or government attacks are the things to be looking out for.