Crypto 360°

Tuesday, 12 January 2021

History Lesson: BTC coin Maximalists Caught in Sh*tcoin Scandal 🤷‍♂️

submitted by /u/Egon_1
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source https://www.reddit.com/r/btc/comments/kvfg2l/history_lesson_btc_coin_maximalists_caught_in/

Bitcoin has a catch-22: Keep fees low enough to get people, make prices high to get people, forcing fees to rise

Here's how I noticed it to work.

Bitcoin's catch-22 is kinda the thing that keeps Bitcoin from fully scaling, and makes it heavily reliant on its speculators.

For once, Bitcoin wants to onboard new users. When that happens, the price rises, creating a bull signal.

However, that can also make those who have Bitcoin in their wallets transfer to exchange to sell, which raises the fees, which can scare off potential uses, creating a bear signal.

This, however, isn't a normal catch-22, as you can simply just keep the money on the exchange (therefore never yours) or trade it to faster coins (Bitcoin Cash for example) when you need to move it, exchanging it back when you want it as Bitcoin.

However, this creates more transactions on the mempool, which causes fees to rise, which discourages people from using Bitcoin at all.

submitted by /u/RowanSkie
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source https://www.reddit.com/r/btc/comments/kvfhjl/bitcoin_has_a_catch22_keep_fees_low_enough_to_get/