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RE: We can now use Visa to pay Bitcoin network transaction fees!

in #bitcoin • 8 years ago

The fees to transfer Bitcoin will grow as they are right now but that doesn't lead to system failure nor will it lead to people stopping speculating on the price.

I didn't said it can't fail but for the Bitcoin mining industry to go away, Bitcoin would have to systematically fail and the transaction limit isn't a systemic failure its only a known limit. That's what I tried to express with my comment.

Too big to fail logic is an oxymoron. I totally agree.

8 years ago in #bitcoin by
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     8 years ago  

    Do you not agree that Bitcoin can fail due to users leaving and moving to lower cost competitors ? In other words a competitive failure rather than a technical failure.

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     8 years ago  

    Yup but I tend to think this won't happen so easily. One of the rare coin that could make it happen is Steem. This is due to the distribution of coins. Bitcoin has one of the best distribution. There's still quite a lot of Bitcoins concentrated in the hands of a few large holders but compare to other coin Bitcoin's distribution is way better off than most if not all and this is quite important. (Steem distribution is another subject altogether)

    Also one other reason why Bitcoin seems quite resilient is its mining industry which govern the ongoing distribution and is way larger than the other crypto mining industries. Here's one excerpt from a sub chapter I made on Bitcoin that explain some of the virtuous cycle Bitcoin mining feeds on.

    Now, the cost of creating or mining a Bitcoin are rising. This is due to the rising competition.

    Bitcoin miners continue mining as long as they can sell the Bitcoins they mined at a profit. If the costs of mining a Bitcoin are rising then miner must sell Bitcoin at an ever rising price.

    This benefit everyone. The Bitcoin holders and miners are benefiting from the rising prices and everyone is benefiting from Bitcoin lower transaction fees compare to fiat currency transaction fees.

    The lower transaction fees aren't so true anymore for small amount but if the cost of "producing" Bitcoin is rising and thus the ability of Bitcoin to store value is ever growing well it seems to lead to what we're seeing right now and with "little" chance of seeing a drastic change in those trends in the near future.

    Yet clearly black swan events can come in many forms and a lot of those event can easily be imagined so that's why I put the word little between quotation marks.

    This website can give a good idea of distribution of the major coin. Damn Litecoin, Dogecoin and Peercoin. Also 25% of Dash could be own by the founder of Dash because of the ninja mine in the first day of mining. It doesn't look much brighter for Ethereum and when it will switch to POS this will advantage larger holder over smaller one which will further concentrate money leading to selling pressure.

    https://bitinfocharts.com/
    https://etherscan.io/accounts/1

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