I would be concerned that as this happens, more miners will go offline and stop processing. This would lower the value of the bitcoin if I am correct. Why would we want to pay more in transaction fees when we can revert back to credit card processing?
Because as of now and even into the foreseeable future an "increase in fees" is still minuscule in comparison to the amount a credit card processor charges, while also needing to worry about chargebacks, rolling balances. What you are saying is if less people are confirming transactions the value of BTC would be lower, my thought is those that stay will profit more as they have a larger piece of the pie.Paypal charges 2.9% + 30c per transaction, BTC charges 0.0044799000 cents per kb.
Business' also look at transactions with risk, a coffee shop won't require you to wait for your $1 transaction to confirm before giving you your drink. The value of that drink was much less than $1. Big ticket items they would require you to wait, but then again they would require you to pay a transaction fee, the hope in the future would be for them to provide discounts to offset this as they won't be charged as much from credit card processors and insurance, but this would come as adoption increases.
