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Re: Wall Observer new ownership
by
r0ach
on 06/07/2017, 23:23:27 UTC
Does "no altcoin talk" apply to every single mention of altcoins, or is it acceptable to mention altcoins in relation to Bitcoin?

Altcoin talk is inevitable because bitcoin currently has a reverse Schelling point.  Network effect assumes infinite scalability, so unless bitcoin has orders of magnitude extra scaling to spare, people will utilize other coins in order to avoid usurious transaction fees.  Telling everyone "hey, you're forced to use bitcoin no matter what!" is a pro-usury stance if you're advocating a fixed block size or already know that scaling will always be severely limited.  I don't see LN as a magic bullet to fix it.  It would just take some burden off the chain for inter-bank transactions done by channels because LN will never work in a decentralized manner without putting all transactions in the same centralized common que or turning into Mike Hearn-style hub and spoke bitcoin banks.

The likely endgame will either be:

1)  people constantly migrating from coin to coin seeking lower fees causing the whole ecosystem to die from dilution

2)  everyone going into some uncapped blocksize coin like Monero

3)  everyone going into some much more centralized system like DPOS with higher scaling and lower fees then abandoning it because it's centralized

This is why the whole blocksize scaling issue is kind of a moot point.  The market at large cares more about fees at the end of the day than decentralization (especially people like the Chinese), so it's going to go wherever there is liquidity + decent fees with some type of illusion of decentralization regardless what bitcoin does.  Unless LN was some type of ironclad scaling solution (which I don't believe it is), betting the house on LN will just be the equivalent of pumping Monero or Litecoin or both.