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How does #bitcoin scale really tho? Like if the current solutions like Lightning cannot scale self custody to the masses, do we invariably fall back into fractional reserve - with a couple of bitcoiners traded in as the new masters in a few places here and there?

I am asking because thinking about this seems to always lead to back to big blocker logic. Like I’m not talking about Bitcoin Cash, I’m talking about Moore’s law scaling to where a decentralized network can be run with blocks several orders of magnitude larger with the standard of widely accessible consumer compute. At such a point, if we reach it, does an expansion of blocksize start to make sense?

We certainly should not sacrifice bitcoin’s decentralization, but does that actually require Bitcoin being locked into the storage and bandwidth standard of 2008 as we progress into the future?

Thoughts?

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Crizzo 1y ago

The difference would be when a fractional reserve Bitcoin bank fails there is no bailout.

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Moon 1y ago

If the mass citizens can not afford self custody it doesn’t really matter tho. The bank fails and more fractional tokens will be printed and the masses will experience inflation but still use them because they can’t afford any alternative.

This is why I question whether if bandwidth and storage continue to progress exponentially we may arrive a point where a bitcoin network with radically expanded blocksize can be maintain in decentralized fashion for the same or less cost than it is today.

This hinges on a technological assumption but if the assumption is correct, I don’t see why decentralization and scalability have to be opposing over the mid-long term.