It seems to me like bitcoin has a major flaw
Actually, there are several, but In this article I will focus on the transaction fees. I will hold my opinions until the end of the article, and I will present what I see as actual facts :
- standard nominal fee of 0.001; at the current price that is 4.45 $
- at 10.000 $ / BTC each transaction will cost 10$
- as the price rises, the People, for whom this cryptocurrency was created, will not be able to touch it. Already 4.45$ per transaction is quite a bit
From a moral point of view, the nominal fee becomes worse:
Anybody new trying to join the bitcoin network now, has the feeling above. While most people have somewhere around a few hundreds to a few thousands to invest or transact with, a few, very lucky people are even luckier, having to pay maybe over 1000% LESS for their regular transactions, than those who already have less... If the network is automated, and doesn't care if it sends 1 coin or 1.000.000, why not devise a system that charges each in the same, equivalent way?
I believe that a cryptocurrency that charges a 0.01% / transaction and gives all back to the miners will truly serve man kind:
It gives the adequate rewards back to all the miners
It treats everybody equivalently
Is just as tempting to join when the price is 10.000$ as it was when it was 1$.
You can Always spend 10$ worth of that crypto without feeling you are being robbed.
The blockchain is truly revolutionary, and I believe there is a short window when we can set out the blueprint for an economy that will serve all man kind, 100% of us.
You can check out my early work at Vialcoin.com
I asked around, and it seems it is possible to create a cryptocurrency that charges a %, but the reason nobody else did it was "economics". I think the reason is lack of foresight. Bitcoin was the first, and just HAD to be made the way it is. It was the first of it's kind, and would not catch on if it was any different.
When taking in all the factors, with all it's flaws, Bitcoin is actually pretty perfect.
The holy grail of the blockchain revolution :)
Now, let's make it better.
If you still can't see where the problem is, look at it this way: similarly to the transaction fee, fiat money has tax. Tax money is supposed to come back to the tax payer in form of services, much in a way fees go back to the miners, except one is centralized, and controlled by government, the other decentralized and controlled by nobody. What do you think will happen to our society if we were all charged a nominal 10.000$ tax per year, no matter how much money you make? How will that affect society? Why do you think tax everywhere in the world is calculated in % and not as nominal?
Because Bitcoin is largely anonymous, and has a set nominal fee of 0.001 BTC per transaction, it's exactly a way towards that world.
Full disclosure: I do own some Bitcoin and several other cryptocurrencies, worth some 600$. I would just love to see them all shoot through the roof, of-course, but they all have the issue mentioned above, so... not entirely sure if 3-4 generations down this road, our world would look better for humanity, as a whole.
You are right that there is still a long way to go. BTC has drawbacks that require improvement before going mainstream. Will those drawbacks be resolved? I don't know. I don't know much about it, but maybe transactions will become cheaper once Segwit2X or further improvements kick in. Right now, transaction fees are high because the higher fee you pay, the earlier it gets picked up into a block to be processed. Otherwise, there will be other cryptocurrencies which will be technically stronger and hopefully get a bigger adoption.
It's a fair point, but regardless, any crypto with a nominal fee instead of % has a huge flaw, as it can grow beyond mainstream transaction budget easily.
Trying to make the nominal transaction fee smaller is a huge hit to all the miners, and another step backwards into the problem. Anything that has value and is transact-able should be calculated in %. IT just scales, and it's how society works. We have not reached so far by taxing nominally.
Everything else is a trap in the long run imho.
Nice post
Thank you @Abdelone
Anybody at all care to weigh in? At least tell why I'm wrong, and where does my logic start to fail.
Skynet bruv
meep
Blockchain, fully transparent distributed ledger, controlled by all miners equally.
It's utopia bruv, you read it wrong :)