Replying to Avatar Leo Wandersleb

Daniel suggests a nation state could buy enough bitcoin to price out all legit use of the network for a month or 20 by just pegging the fees above $100/tx.

https://twitter.com/csuwildcat/status/1655399304268218369

How realistic or damaging is that? What would happen?

So miners would be happy and expand their capacities for sure but would the price crash? Would adoption drop?

Daniel replied on the Dog-app and with the feedback here, my conclusion is that such an attack on its own would probably be good for Bitcoin.

* Low stakes Bitcoiners would temporarily lose access to their on-chain funds but they don't dictate the valuation of BTC.

* Miners would have an extra $4-$10 billion, part of which would flow into the development of solutions to prevent their livelihood from failing.

* Low stakers would use custodial lightning. Most already have their funds on exchanges or apps that don't even let them send/receive BTC.

* Whales would run LN nodes and probably let friends and family use them, too.

All the above is bound to happen anyway, except for the low stakers suddenly not being able to use their $100 in holdings.

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