Meanwhile BTC price will continue going up and so will the fees. BTC will continue working.
I just hope the fee never becomes so high that people can't even move 1 BTC!!! that would be stupid.
But as long as the price goes up the fees will go up too.
The question, when does bitcoin become useless for us? when do we dump because the fee will become higher than our holdings?
I think when you can't even move 1 BTC per coin because the fee is higher than 1 BTC, the price must be super high or it will collapse.
ignoring the first sentance (im didnt include in ur quote) you have a very level headed question
my opinion
we are already at and passed the utility point.
if your basing it on moving 1btc... the answer is naturally when it becomes costly to the point of over 1% (so 0.01btc fee) to move it people will lose preferential desire to hold bitcoin.
of course bitcoin fee's dont work as % and most people are not moving funds in 1btc amounts. usually in real life of going to an ATM and banking its $10-$100amounts on average 'spend'. that people withdraw/handle/carry around/spend.
so based on a 0.01-0.1 spend amount .. 0.0001-0.001fee
in developing countries its $0.10-$10(0.0001- 0.01) amounts so (0.000001-0.0001fee)
i have been to a few countries trying to drum up bitcoin support and the main objections is the fee.. $0.60 is about 12 hours labour in some countries so when you tell them they need to work 12 hours just to move funds.. yep you guessed it they are not interested.
bitcoin has become too american economist minded (only for the rich wall streeters) and has been shaped by those refusing to allow onchain growth to keep pushing fake narratives of 'but pools need higher fee's tonight' propaganda. which has made it unattainable to the unbanked/developing countries (unless your a rich nigerian prince/oil baron)
though onchain transactions should not be a world history report of every doughnut bought. it should not cost hours of labour to use it either.
im sure if LN had a $0.0001 LN channel fee and an onchain $0.01 people who spend often will naturally volunteer to use LN. and then we can code a better fee priority mechanism to slowdown/stop spammers onchain from spending every 10 minutes by using CODE not economics.
EG coinage under 144 confirms. fee is higher