One good thing about the #BitcoinETF, it will likely reduce fee pressure brought on by traders during bull markets.
Wall street won't do it on chain, they will all just keep trading paper and derivatives.
Discussion
Layer 2s FTW? π
i think very likely it's overall going to be the case that fee rates fluctuate from time to time for various reasons but for the most part will stay within a fairly close distance of a reasonable percentage of transferred versus fee
the ordinals are really an exploit of a weak part of the specification, and i'm confident that this will be resolved in a few months time
and yes, ETFs will take a heap of trader movements off the chain and into the exchange ledgers, so it's probably going to mean the lower end of fee rates starts to fall further than it has in a while due to a substantial reduction in demand
The ETFs still need to acquire bitcoin, though. Does this not happen on chain? Maybe it's all in Coinbase's database.
Truth.
If Spot is accepted as inevitable fiat power games, the positive is some folks will move to self custody sooner because of it. Most wonβt and one day it will be too late.
This is actually a concern, in some respects.
To a certain extent the ETF is functioning like a second layer. However, in this case, unlike Lightning, no initial on chain transaction is required, to bootstrap oneself onto the layer.
The more liquidity held and transacted in this type of fee-less layer, the more miners miss out on transaction fees.
Yes, ETF product managers will have to make on chain transactions to balance their assets, but realisitically this could be done with a single on chain transaction per day/week/month.
I am not yet sure where the sweet spot is, in terms of alleviating fee pressure, and maintaining mining profitability.
Hopefully, the market will figure it out.
A capital sinkhole designed to absorb liquidity
Good point
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