Post
Topic
Board Bitcoin Discussion
Re: With El Salvador and now Tanzania adopting Bitcoin 'as a currency' - how is this
by
kryptqnick
on 19/06/2021, 15:15:32 UTC
Bitcoin Layer 1 simply cannot support this. 1 transaction per month from each person in El Salvador would use 100% of Bitcoins transaction capacity for that month.

What solutions are being proposed/implemented by these countries to make it viable - without using any/many Layer 1 transactions?

Are they using Lightning?

Are Banks providing BTC accounts, and then settling transactions on L1 occasionally with each other?

Is it something else?

How are they using Bitcoin to buy a 5 cent cup of coffee, with near-0 fees?
I'm also very curious to find out how it will go with mass adoption (and whether it'll actually follow after Bitcoin becoming legal tender, which is not necessarily going to happen). Transaction fees are currently surprisingly low, but if usage increases dramatically in El Salvador, this is going to be a huge issue. The Lightning Network can show what it's worth and whether it's truly a helpful solution, by the way, in El Salvador. But I think it's too early to judge because the influx of new users and more transactions hasn't happened yet.