You are collating two things
1. Everyone can own their own UTXO
2. Use it for everyday transactions
1 is important, 2 is not.
Most people should use e-cash for everyday use. A UTXO would be used in a similar fashion to moving money into a high interest term deposit - where you hold the majority of your money but only make a transaction once a month to once every few years, depending how wealthy you are. A lightning channel to the eCash would allow the balance that's held by the custodian to be minimal.
If a transaction fee exceeds the $10 -100 range even this breaks down.
Replies (4)
Here's my math involving 8 billion people:
If we assume 7000 tx's per block, then the 144 daily blocks gives 1 million transactions. Most blocks will have less than 7k tx's, but let's go with this high tx figure for now just to explore the math.
If we divide 8 billion people by 365 million tx's per year, we arrive at almost 22 years per tx in terms of bandwidth, which impacts the tx fees.
Granted, a certain percentage of the world's population are children who will not need to spend from a savings UTXO on L1. Then there may be a certain percentage that don't use Bitcoin at all. Finally there are hodlers that have a 5, 10 or 15 years horizon for their savings.
If I am optimistic, 1 L1 tx every 10 years should be affordable for most people, so that leaves L1 as primarily a savings layer, while L2-L3 offers cash functions via decentralized banks/nodes.
22 years between average transactions is a bit long. However, we are decades away from having that many people using it. By then a 10x block size increase may be trivial, which would bedrop it to 2.2 years, which is a decent savings frequency.
What prevents people from having their own UTXO now? There are more bitcoin addresses than stars in the universe.
It seems to me that the limitation is not UTXO addresses but rather transaction fees to receive some sats.
Yeah, but a $10 transaction fee will stop daily transactions but it would be ok for transaction greater than $1000, which most people can afford. If fees exceed $1000 transaction would need to be greater than $100000 which would exclude most people.
