Nostr Web Client

If you had $200 total worth of on-chain BTC, and it was your life savings, what would your strategy be to hodl it going forward—knowing that L1 fees will continue rising with adoption?

Leo Fernevak 2y ago

Long term savings.

The value of sats will increase over time. If your $200 bitcoin is worth $20k at some point, then even if fees increase you are good.

Reply to this note

Please Login to reply.

Discussion

Leo Wandersleb 2y ago

Fees in sats can also go up. It will be a very tough realization for people that have low balances or many UTXOs.

David Ellis 2y ago

I don't understand. You have to part with increasingly more valuable satoshis to pay increasingly higher fees. In USD terms, the fees will increase at least as fast as the value of the original $200.

Leo Fernevak 2y ago

Even if we assumed your assumption was correct:

Let's assume an average $12 fee now (probably will drop back to lower levels)

$200 - $12 = $188

If we assume your thesis that fees will increase at the same pace as the savings:

$20,000 - $1200 = $18,800

Yeah, I'd rather have $18,800 stored safely on the base layer, vs storing that amount on L2.

Leo Fernevak 2y ago

Now less than a week later the average fee is around $4 - $5 per tx.

In the above example with a 100x increase in both exchange rate and transactions:

$20,000 - $450 = 19,550.

₿² 2y ago

Math 4 the win 🏆

Leo Fernevak 1y ago

Just had a look at the mempool today and the average tx fee is $1.61.

NotBiebs and 69 others 2y ago

i could be wrong, but i highly doubt the fees will increase as much as the value of bitcoin. the fees are based on the amount of data being sent in the tx and not on the amount of sats being sent.