1. The network capacity is half a million transactions per day no matter how high the fees are. Fees don't change capacity.
2. If people are forced onto layers, then the fees that go to securing the network will go to the layers also, depriving the miners of needed compensation when the blockreward gets halved. If the 1 MB limit is never raised, then the network will eventually be funded by those same half million people even if billions are using it in layers and side chains. That will present a security problem.
extrapolating out hashing difficulty, the mining network in a couple of years will be several gigawatts, all funded by fees because the block reward will be next to nothing. That means that fees will have to reflect a cost of hundreds of dollars per transaction if we keep the 1 MB limit!
1. Economics is about dealing with scarce resources, not free shit, especially of the self-defeating kind.
No, economics is the social science that describes the factors that determine the production, distribution and consumption of goods and services.
You're thinking
BTCeanie
BTCabies.
2. Therefore the upper-layers managers will do exactly what you ask: paying higher btc fees thanks to the higher volume that they manage -not work at a loss and compensating it with volume :-D
What is a non sequitur?
...
XMR is Monero
You mean that secure, private, untraceable cryptocurrency that's been doing amazingly well, unlike BTC (which is only pseudo-private and is neither secure nor untraceable [arguably])?