📅 Original date posted:2015-07-29
📝 Original message:All of the properties you describe are also properties of many of the
alternative blockchains that currently exist. In this space, Bitcoin gives
up these advantages. Much like anywhere else where liquidity moves within a
system, value will move to the network of least friction. The reality right
now is it's very easy to move value from Bitcoin to another blockchain with
less friction. Because of this, there will never be a high value settlement
network created by an artificially imposed limit on transaction rate. The
value will simply bleed out of Bitcoin to alternative blockchains offering
lower fees if this is attempted. This is basic economics.
-----Original Message-----
From: Owen via bitcoin-dev
Sent: Wednesday, July 29, 2015 12:56 PM
To: Bitcoin Dev
Subject: Re: [bitcoin-dev] Why Satoshi's temporary anti-spam measureisn't
temporary
On July 29, 2015 7:15:49 AM EDT, Mike Hearn via bitcoin-dev:
>Consider this: the highest Bitcoin tx fees can possibly go is perhaps
>a
>little higher than what our competition charges. Too much higher than
>that,
>and people will just say, you know what .... I'll make a bank transfer.
>It's cheaper and not much slower, sometimes no slower at all.
I respectfully disagree with this analysis. The implication is that bitcoin
is merely one of a number of payment technologies. It's much more than that.
It's sound money, censorship resistance, personal control over money,
programmable money, and more. Without these attributes it's merely a really
inefficient way to do payments.
Given these advantages, there is no reason to believe the marginal cost of a
transaction can't far surpass that of a PayPal or bank transfer. I
personally would pay several multiples of the competitors' fees to continue
using bitcoin.
Sure, some marginal use cases will drop off with greater fees, but that's
normal and expected. These will be use cases where the user doesn't care
about bitcoin's advantages. We must be willing to let these use cases go
anyway, because we unfortunately don't have room on chain for everything
anyone might want to do.
Therefore, bitcoin tx fees can go much higher than the competition.
Remember how Satoshi referenced the banking crisis in his early work? The
2008 banking crisis was about a lot of things, but high credit card and
paypal fees wasnt one of them. There's more going on here than just
payments. Any speculative economic analysis would do better to include this
fact.
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bitcoin-dev at lists.linuxfoundation.org
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Raystonn . [ARCHIVE] /
npub18e…20rmx
2023-06-07 15:44:04
in reply to nevent1q…ay8q
Author Public Key
npub18e464uqlzh9e8qm5dmnurg39za2s9t9uxg608eppvzkhr5q3uzfqg20rmxSeen on
wss://relay.nostr.bandPublished at
2023-06-07 15:44:04Event JSON
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"content": "📅 Original date posted:2015-07-29\n📝 Original message:All of the properties you describe are also properties of many of the \nalternative blockchains that currently exist. In this space, Bitcoin gives \nup these advantages. Much like anywhere else where liquidity moves within a \nsystem, value will move to the network of least friction. The reality right \nnow is it's very easy to move value from Bitcoin to another blockchain with \nless friction. Because of this, there will never be a high value settlement \nnetwork created by an artificially imposed limit on transaction rate. The \nvalue will simply bleed out of Bitcoin to alternative blockchains offering \nlower fees if this is attempted. This is basic economics.\n\n-----Original Message----- \nFrom: Owen via bitcoin-dev\nSent: Wednesday, July 29, 2015 12:56 PM\nTo: Bitcoin Dev\nSubject: Re: [bitcoin-dev] Why Satoshi's temporary anti-spam measureisn't \ntemporary\n\n\n\nOn July 29, 2015 7:15:49 AM EDT, Mike Hearn via bitcoin-dev:\n\u003eConsider this: the highest Bitcoin tx fees can possibly go is perhaps\n\u003ea\n\u003elittle higher than what our competition charges. Too much higher than\n\u003ethat,\n\u003eand people will just say, you know what .... I'll make a bank transfer.\n\u003eIt's cheaper and not much slower, sometimes no slower at all.\n\nI respectfully disagree with this analysis. The implication is that bitcoin \nis merely one of a number of payment technologies. It's much more than that. \nIt's sound money, censorship resistance, personal control over money, \nprogrammable money, and more. Without these attributes it's merely a really \ninefficient way to do payments.\n\nGiven these advantages, there is no reason to believe the marginal cost of a \ntransaction can't far surpass that of a PayPal or bank transfer. I \npersonally would pay several multiples of the competitors' fees to continue \nusing bitcoin.\n\nSure, some marginal use cases will drop off with greater fees, but that's \nnormal and expected. These will be use cases where the user doesn't care \nabout bitcoin's advantages. We must be willing to let these use cases go \nanyway, because we unfortunately don't have room on chain for everything \nanyone might want to do.\n\nTherefore, bitcoin tx fees can go much higher than the competition.\n\nRemember how Satoshi referenced the banking crisis in his early work? The \n2008 banking crisis was about a lot of things, but high credit card and \npaypal fees wasnt one of them. There's more going on here than just \npayments. Any speculative economic analysis would do better to include this \nfact.\n\n\n_______________________________________________\nbitcoin-dev mailing list\nbitcoin-dev at lists.linuxfoundation.org\nhttps://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev",
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