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by daveguy 246 days ago
Yeah, I don't think the dominos will fall until the next flash crash when people realize it takes $100+ just to withdraw (because 7 transactions per second isn't many). As soon as confidence is lost, the reaction will be full blown tulip market. We just haven't seen the first bank run yet. And there is literally no backstop for a crypto bank run.
3 comments
mrb 246 days ago
It doesn't take $100 to transfer. Fees are currently around $1. You are off by a factor 100!

Also, Bitcoin can process far more than 7 tps through the Lighting network.

I wonder where your misconceptions come from?

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beeflet 246 days ago
>Fees are currently around $1.

Fees are CURRENTLY around $1 because no one is using the L1 network. There is no demand now because of all of the times when the transaction fees were $30.

>Also, Bitcoin can process far more than 7 tps through the Lighting network.

The lightning network is insecure during periods of high demand because you aren't able to safely close channels. Also, you still need to fund channels on L1 in the first place!

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daveguy 243 days ago
Agreed. Currently is the key there. I was referring to whent a run starts. It's been at $100 before and we haven't even seen a serious run yet. $100/tx is the "every few years" rate.
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tadfisher 246 days ago
Oh, there will be runs.

If they remove the guardrails keeping crypto out of the regulated financial industry (read: KYC and AML requirements), your bank deposits will absolutely be comingled with toxic crypto assets, because it will be way cheaper to avoid paying compliance people than the transaction fees.

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snek_case 246 days ago
Will definitely be entertaining to watch if it happens.
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