Topic: Bitcoin losing its P2P efficiency!! - page 2. (Read 588 times)

Transactions fees temporarily spike every once in a while. And every time that happens so many people feel the need to make these doom and gloom threads about Bitcoin not working anymore.

there are ways to identify transactions that use particular unconditioned "non standard" (validation bypass) opcodes.. where by code can punish only the junkers at a higher rate.. but dev politics have other games in mind to make bitcoin annoying for all, so they can promote other networks and systems users should use to pay middlemen.. to reimburse devs sponsors

lower fee do not cause more centralisation.. its actually the opposite way round

when fee's are high users lock their value to middlemen, causing more centralisation of fund control

when mining pools get too much profit. they buy more asic farms to centralise the hashing. but the distributed hobby miners due to not having great deals on electric and hardware cannot buy as many asics in one go to compete.

when pools take a 2% cut of reward + X% of fee's they can expand their single location asic farm faster than hobby miners distributed around the world getting only 0.000x% share of reward+fees

it doesnt matter how high the fee's go the individual independent asic owners cannot compete compared to the pool owners

its the economics of any industry manager-worker relationship
if general income is X but manager gets 2% and worker gets 0.0002% the more income the business earns the manager profits the most

think about it.. (asic costs $4k)
if a manager gets 2% of $270k ($5375) he can add 4 new asics every 3rd block
if a worker gets 0.0002% ($0.54) he can get one new asic once every 7400 blocks

This is just due the f*cking ordinals. The Bitcoin fee was normal or even low in previous days. And I hope this will go down because these ordinala are not long lasting. Soon they will not exist in the crypto world.
By the way there is one more reason, the popularity and adoption of Bitcoin increased, the congestion in the mempool and the competition for block space led to noticeable increases in transaction fees.
As we can see the Bitcoin Price is increasing, with this significantly the transaction fee also increasing. Hope it will come down soon.

It's important that bitcoin remains as decentralised as possible, the added value of having low value transactions directly on the L1 is not enough of a reason to compromise on bitcoin's decentralisation.

Bitcoin turnout to be more on valuable investments rather than use as currency for P2P and other daily transactions. Transaction is expected to be higher in proportion to the Bitcoin price growth. The success on price growth gives a repercussion of having a high fee.

There’s a lot of existing altcoin out there that can be use for P2P transactions. I think being valuable investment is the only feature that make Bitcoin still unique among bunch of shitcoins out there since convenient P2P transactions is already common on other blockchain.

One or the Most significant reasons for the creation of Bitcoin was,to create a currency easy and suitable to be used for peer-to-peer transactions.
During the first eight to nine years of its launch, Bitcoin actually achieved this goal, With fees considerably low as just a few cents. However things began to change at about early 2016 when fees began to increase noticably, and during late 2017 when the mempool started having congestions, which influenced transaction fees directly.

Of course, One can say the reason for the very low fees during its earliest stages was a result of low adoption and a less congested mempool. We can also confirm that due to the problems of competition for block spaces which led to high fees, Bitcoin's block size was increased on August 24, 2017 by the application of the SEGWIT protocol upgrade known as "Segregated witness" in full. This definitely helped in malleability of transactions by separating the signature data (withness data) from the transaction data to free up block space.

Other solutions like the layer 2 that became popular during 2018,also helped reduce congestions and fees by conducting majority of transactions off the Blockchain making transactions more scalable and faster.

However, upon these upgrades and solutions, as Bitcoin grew the congestion problem has  become more and more prominent especially due to the effects of ordinals in recent times.These congestion and fee problems are gradually exempting the need to make simple day to day transactions with Bitcoin thereby bring the need for people to make small transactions with other stable altcoins like Tron and Doge.

Take for example this post made by Hhampuz who is one of the most reputable campaign managers on Bitcoin talk.
In that post Hhampuz made mention of spending roughly $200 /week on fees for each campaign. Now assuming Hhampuz managess 5 campaigns for 15 weeks, taking the math he would have spent an enormous amount of about $15,000 (~0.34BTC) on fees only. Considering these enormous fees P2P transactions would become  uneconomical.

Yes, you're right, it's happening unfortunately because of ordinals and similar token spam. Some signature campaign managers are migrating to LTC or USDT because the network has now stalled completely. 100+sat/byte transactions are sitting in mempool for days. I simply can't believe it. Bitcoin has become unusable.

One or the Most significant reasons for the creation of Bitcoin was,to create a currency easy and suitable to be used for peer-to-peer transactions.
During the first eight to nine years of its launch, Bitcoin actually achieved this goal, With fees considerably low as just a few cents. However things began to change at about early 2016 when fees began to increase noticably, and during late 2017 when the mempool started having congestions, which influenced transaction fees directly.

Of course, One can say the reason for the very low fees during its earliest stages was a result of low adoption and a less congested mempool. We can also confirm that due to the problems of competition for block spaces which led to high fees, Bitcoin's block size was increased on August 24, 2017 by the application of the SEGWIT protocol upgrade known as "Segregated witness" in full. This definitely helped in malleability of transactions by separating the signature data (withness data) from the transaction data to free up block space.

Other solutions like the layer 2 that became popular during 2018,also helped reduce congestions and fees by conducting majority of transactions off the Blockchain making transactions more scalable and faster.

However, upon these upgrades and solutions, as Bitcoin grew the congestion problem has  become more and more prominent especially due to the effects of ordinals in recent times.These congestion and fee problems are gradually exempting the need to make simple day to day transactions with Bitcoin thereby bring the need for people to make small transactions with other stable altcoins like Tron and Doge.

Take for example this post made by Hhampuz who is one of the most reputable campaign managers on Bitcoin talk.
In that post Hhampuz made mention of spending roughly $200 /week on fees for each campaign. Now assuming Hhampuz managess 5 campaigns for 15 weeks, taking the math he would have spent an enormous amount of about $15,000 (~0.34BTC) on fees only. Considering these enormous fees P2P transactions would become  uneconomical.

You know the truth: Bitcoin has just become an investment scheme. Everyone just wants to make money from Bitcoin investments; hence, no one cares about the real goal of Bitcoin. True, Bitcoin still uses a peer-to-peer payment method, but it is insignificant in comparison. Due to the high fees, it has become hard to make payments in any marketplace through Bitcoin. Because congested network transaction times wouldn't meet with the payment gateway. In this manner, it's true that Bitcoin is losing efficiency. Developers should find a solution to reduce transaction fees and avoid congested networks.

segwit and LN have not solved things..

developers could have had many ways to keep fee's from becoming a premium