Friday, 24 May 2019

PSA: Core DOESN'T WANT FEES DOWN - Expect on-chain BTC fees to rise in the future as that's the plan!

With cryptocurrencies experiencing a run interest is picking up again. This obviously includes the market leader, Bitcoin BTC. It also means higher fees than many newcomers have seen. (It's currently $3.19 to get into the next block.) So r/btc is fielding questions (not complaining; we love it!) from people wondering what to expect in the future for BTC fees.

Let me make this clear: Core doesn't want low on-chain fees. Period. If you want to conduct transactions on-chain and pay low fees use Bitcoin Cash (BCH).

Why?

Part of Core's philosophy is that miners should be guaranteed to have monetary incentive to mine when the block reward dwindles to near nothing. Their plan is to have fees paid for normal on-chain transactions reach maybe hundreds or thousands of dollars each. In this way miners are guaranteed monetary rewards. Core expects that a "Layer 2" or higher system will be the thing which actually processes normal day to day transactions cheaply. Their current best Layer 2 project is the Lightning Network.

If you want to use BTC and you want to do so for very cheap fees then you are expected to become comfortable with using Layer 2 solutions like the Lightning Network (which is currently not exactly user friendly nor reliable for all use cases).

The Bitcoin Cash Approach

In contrast, Bitcoin Cash (BCH) is fanatical about low on-chain transaction fees, like way under 1 cent. We similarly want miners to continue to have incentive to mine, but we plan to build our reward by having each block contain tons of transactions paying tiny fees, which will add up.

They are simply two very different plans or "roadmaps". So people should understand what they're signing on to with each. A last note is the Bitcoin Cash roadmap happens to be the original plan from Satoshi, and according to his white paper.

This is also why Core will never raise the block size.

submitted by /u/cryptos4pz
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source https://www.reddit.com/r/btc/comments/bs7odf/psa_core_doesnt_want_fees_down_expect_onchain_btc/

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