Does anyone know what price & fee rate it becomes too expensive for the average person to be layer 1 users and have to user layer 2? I feel like we’re close this next cycle. #bitcoin
Discussion
Agreed although most payments are layer 2 which is why non custodian wallets like nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 have the right idea
Love what nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 and those other wallets are doing to simplify channel management! But won’t it still result in small UTXO set when user wants to move the funds to layer 1 and they close the channels? What’s the solution for using layer 2 noncustodial but merging to large utxo set when ready for layer 1?
IMO when the traffic becomes that backed up on layer 1 leaving layer 2 for 1 wouldn’t be the case most likely the opposite the management of channels and fees change constantly… I do see where your coming from, we are almost there.. curious to see what changes or new layers that come from this
Don’t have crazy amounts of small UTXOs. That’s the killer right there.
Exactly, at some price point & fee rate the average person will be forced into layer 2 because as price goes up UTXOs become smaller in dollar terms. Right now it’s $400 for a 1M UTXO. Utxo management becomes untenable for average person.
The open question I have is in this next cycle, I have no doubt fees will rise (as they already have) but with large institutional buyers doing batch transactions and a host of users doing nothing on-chain (only using ETF paper products) does it mute what would be an otherwise higher fee environment. 🤔