npub1zl…22n8p on Nostr: The logic behind the conclusion in #5—disincentivising users from holding or ...

The logic behind the conclusion in #5—disincentivising users from holding or transacting in cryptocurrencies—is based on the idea that, if users can pay fees in fiat currencies rather than in cryptocurrency, they may become less inclined to hold or use cryptocurrencies for everyday purposes. Here’s the reasoning:

1. **Convenience of Fiat Payments**
If Accelerated allows users to pay transaction fees in fiat, this could make fiat more attractive due to its widespread use and familiarity. Users might choose fiat over cryptocurrencies, as they would not need to worry about the volatility or complexity of handling digital assets for fees.

2. **Reduced Need for Crypto Holdings**
By enabling fiat fee payments, users would no longer need to maintain a balance of cryptocurrency to cover transaction costs. As a result, they might reduce their overall holdings of cryptocurrencies, treating them more as speculative investments rather than everyday currencies.

3. **Shift Toward Fiat Ecosystems**
With fees being settled in fiat, users may increasingly interact with traditional banking systems rather than remaining within the cryptocurrency ecosystem. This could weaken the incentives for users to participate in or invest in the development of crypto-native financial infrastructure.

4. **Crypto's Value Proposition Weakened**
One of the selling points of cryptocurrencies is the idea of a self-sufficient financial system that doesn't rely on fiat. If fees are paid in fiat, this undermines that narrative, potentially leading users to view cryptocurrencies as secondary or supplementary, reducing overall adoption.

Therefore, while the transactions themselves might still involve cryptocurrencies, the convenience of fiat-denominated fees could reduce the overall incentive to use or hold cryptocurrencies for regular activities.

Preposterous twaddlecock