segwit and LN have not solved things..
fee's have remained higher than pre 2016 prices.. infact segwit had code to make 2009-2016 formatted transactions become 4x that of segwit. and then segwit also increased in fee rates too , thus the legacy multiple grew even faster in fee cost
looking at the liquidity capacity of LN compared to the transaction volume of bitcoin network. more bitcoin transfers had more value in one block than the whole LN network ever locked up in 6 years
LN has not even touched 0.0001% of the value transfer, bitcoin has been able to achieve in one 10minute block session
yes bitcoin has lost efficiency and since 2016 all we have seen is development stall, in exchange for developers getting sponsored by corporations to concentrate on other additions that only aid projects which aim to get people stuck into using middle men.. all while being told for 6 years "be patient, just wait, it will take care of itself"
many excuses are made. all trying to avoid the conversation of blaming the developers. yet bitcoin is not some self writing AI. developers wrote it and now they want to blame everyone else for the actions caused by developers and the inaction caused by developers.
the latest distraction is trying to blame asic machines for the fee cost. even though asics do not select which transactions get into a block
developers could have retained a fee formulae that would have only fee punished spammers.
developers could have keeps "nonstandard" tx formats disabled from node relay preconfirm
developers could have not included code that miscounts bytes
developers could have scaled the blockspace efficiently where the 4mb space was actually usable to be 4x of 1mb space
developers could have had many ways to keep fee's from becoming a premium
but instead developers stopped optimising bitcoin or scaling bitcoin and sold their souls to corporations that want users to abandon bitcoin in exchange for some other payment system off the blockchain
for developers that no longer want bitcoiners using the blockchain efficiently. those developers should give up-retire and realise they should not be politicising their views by pretending to be bitcoin blockchain developers if its now against their sponsored ideals to develop bitcoins blockchain
Topic: Bitcoin losing its P2P efficiency!! - page 3. (Read 490 times)
I also agree with the earlier posts that Bitcoin is not losing its P2P efficiency. The system is still unchanged and everyone will be able to make a transaction between persons directly. It is that the fee is surging and anyone willing to pay for the transaction fee no matter how much it cost can still fully enjoy the P2P feature of Bitcoin. If BTC is losing something, it is losing the benefits of making transactions at lower costs.
This is expected, merchants will be most likely to be affected by the surge of Bitcoin transaction fees. If this tx fee surge continues, Bitcoin will be abandoned by merchants, and that will have a huge impact on Bitcoin adoption. Miners may enjoy the high fees today but most probably they will be dried out when people stop using Bitcoin due to high fees.
I have stopped accepting Bitcoin payments in my business for now. When the fee was low, I usually liked to cover the transaction fee for the customer. As the fee got higher, I initiated another strategy, which was to split the fee between me and the customer, but now the fee has gotten so high that it's affected me. I can't afford to pay such a high fee for customers, and majority are not ready to pay the high fee either. Only a few are will to pay. It's affecting.
This is expected, merchants will be most likely to be affected by the surge of Bitcoin transaction fees. If this tx fee surge continues, Bitcoin will be abandoned by merchants, and that will have a huge impact on Bitcoin adoption. Miners may enjoy the high fees today but most probably they will be dried out when people stop using Bitcoin due to high fees.
hero member
Activity: 532
Merit: 508
Leading Crypto Sports Betting & Casino Platform
Bitcoin losing its P2P efficiency!!
Bitcoin is not losing any P2P efficiency; just as it is, anyone can still use it for their transaction as long as they are ready to pay the transaction fee. P2P transactions are carried out based on an agreement. Frankly speaking, what we are dealing with here is the transaction fee, which has skyrocketed and become unfavorable for most Bitcoiners like myself.
Quote
These congestion and fee problems are gradually exempting the need to make simple day to day transactions with Bitcoin
I have stopped accepting Bitcoin payments in my business for now. When the fee was low, I usually liked to cover the transaction fee for the customer. As the fee got higher, I initiated another strategy, which was to split the fee between me and the customer, but now the fee has gotten so high that it's affected me. I can't afford to pay such a high fee for customers, and majority are not ready to pay the high fee either. Only a few are will to pay. It's affecting.
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.
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.
This has been an issue except for those who uses LN or will take time to wait using accelerators but in the end this is still not suitable for us as bitcoiners, this is changing people perception of Bitcoin soon I guess if there are no alternative then everyone will just be HODLing bitcoin just for making money and the main reason of its invention which is giving individuals financial freedom from paying high charges, third parties and slow transactions.
Some individuals never consider Bitcoin scalability as any serious issue but as times pass by its becoming worse because of congestion. Now imagine if the entire world has adopted bitcoin then will such fee be constant?
Some individuals never consider Bitcoin scalability as any serious issue but as times pass by its becoming worse because of congestion. Now imagine if the entire world has adopted bitcoin then will such fee be constant?
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.
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.
Jump to: