Bitcoin made a concious design decision not to increase the block size to make the network "scale out". That means the opportunity to increase the running of full nodes because the requirements for hardware to run them will not be high. That decision maintains decentralization and security.
To solve the problem of scalability in accordance to Bitcoin's design decision, a 2nd layer is needed. Bitcoin Cash is solving it by having everything onchain, but it will have to negatively affect decentralization and security.
Your fear that it might increase the fees astronomically are only that. When that problem arises, do you believe that the developers will leave it alone? There are already future plans to allow channels to add more Bitcoins if needed to refrain the users from opening and closing them as often.
To solve the problem of scalability in accordance to Bitcoin's design decision, a 2nd layer is needed. Bitcoin Cash is solving it by having everything onchain, but it will have to negatively affect decentralization and security.
Your fear that it might increase the fees astronomically are only that. When that problem arises, do you believe that the developers will leave it alone? There are already future plans to allow channels to add more Bitcoins if needed to refrain the users from opening and closing them as often.
Well, one thing for sure is that Bitcoin has the most prominent developers in the blockchain industry. Therefore, I think that fees rising over the long-term shouldn't become much of an issue, since solutions would be found to make the LN as better than ever. I'm so excited about this and hope to use the LN in the mainnet soon for everyday purchases at merchants that accept it.
But here is another theory that "rains on your parade", if block rewards become low and fees collected are too low, some of the miners would have to stop, making mining more centralized because the "niche" has become too small to accomodate but the most efficient miners. But we will have to wait and see how that turns out.
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What is worrying in Bitcoin Cash's 32mb blocks is if it scales, it might isolate some full nodes and make it hard for them to sync and keep up to the rest of the network because of the higher hardware requirment.
That's an attack scenario for some bad miners to use to attack the network and isolate some full nodes deliberately. Security and decentralization are slightly given up for scalability.
That's an attack scenario for some bad miners to use to attack the network and isolate some full nodes deliberately. Security and decentralization are slightly given up for scalability.
Yes. Bitcoin Cash is going to become a quite troublesome cryptocurrency, as it grows in user adoption over time. What's worst is that it'll be constantly hard forking to increase its block size over time. Therefore, the bigger the block size, the higher the risk will be for BCH as it turns out to become extremely centralized. I'm glad that Bitcoin still has a 1mb block size limit, despite that it's not scalable this way. It helps to maintain its decentralization, and with second layer solutions such as the LN, the risk of centralizing the main chain is mitigated.
Yes, as long as the block size is "regulated" to the most necessary size, the network will scale out. The Bitcoin Cash supporters say it does not matter because "Moore's Law". But what they did not consider is not all node operators are willing to do the hardware upgrades.
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I believe you are thinking of the worst case scenario. Let us leave that thought open and observe how it happens in practice.
Yes, we'll see what happens eventually. In the meantime, I guess it's up to buy Bitcoins while they're cheap as I have the feeling that they will skyrocket in value when LN becomes practical in the mainstream world.
Plus everyone should try to understand that Bitcoin is not a "consumer product". It is decentralized, censorship resistant hard money. The core protocol is what should be prioritzed the most. "Scaling for the mainstream" is good, but should only considered "secondary".
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Yes, only time will tell. But never sell your Bitcoins.
You bet I won't. After all, Bitcoin will continue to soar in value once the LN becomes stable and practical in our world. What's best is that over time, Bitcoin becomes scarcer, which shows that it's prone to become more valuable in the future. I'm hoping that it reaches a price goal of $50,000 and beyond.
6 figures.