Does anyone know what price & fee rate it becomes too expensive for the average person to be layer 1 users and have to user layer 2? I feel like we’re close this next cycle. #bitcoin
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Agreed although most payments are layer 2 which is why non custodian wallets like nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 have the right idea
Don’t have crazy amounts of small UTXOs. That’s the killer right there.
Exactly, at some price point & fee rate the average person will be forced into layer 2 because as price goes up UTXOs become smaller in dollar terms. Right now it’s $400 for a 1M UTXO. Utxo management becomes untenable for average person.
Love what nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 and those other wallets are doing to simplify channel management! But won’t it still result in small UTXO set when user wants to move the funds to layer 1 and they close the channels? What’s the solution for using layer 2 noncustodial but merging to large utxo set when ready for layer 1?
The open question I have is in this next cycle, I have no doubt fees will rise (as they already have) but with large institutional buyers doing batch transactions and a host of users doing nothing on-chain (only using ETF paper products) does it mute what would be an otherwise higher fee environment. 🤔
IMO when the traffic becomes that backed up on layer 1 leaving layer 2 for 1 wouldn’t be the case most likely the opposite the management of channels and fees change constantly… I do see where your coming from, we are almost there.. curious to see what changes or new layers that come from this