Luke-Jr, a Blockstream “contractor,” told everyone to not use segwit after he celebrated its activation with a segwit cake in a party. Luke-Jr says:
“[Public Service Announcement]: If you support reducing the block size (good for Bitcoin), avoid using Segwit for normal transactions. Only use Segwit for Lightning.”
Lightning doesn’t exist for end users and might not this year at all with the protocol still in heavy development as far as we are aware.
Moreover, it’s not clear why he thinks a segwit transaction would be different than an ordinary transaction, except that such segwit transactions are usually much bigger.
In which case, it might be a good advice, but then is he saying segwit doesn’t actually increase capacity because any increase is taken by their bigger size?
Luke-Jr joined many other Blockstream employees in celebrating segwit’s activation together with a cake made specifically for the occasion.
Moreover, he spearheaded attempts to force its activation through a UASF flag-day soft-fork which threatened to chain-split bitcoin into two or three currencies.
He, therefore, was a very vocal supporter of segwit and took action to increase its chances of activation. But now that it has activated, he is saying we actually shouldn’t use it.
That might be because Bitcoin Core developers have now become politicians to some extent. Something which is necessary if they are to define bitcoin as some, like Bitwala, have said.
Because whether segwit transactions are used for the Lightning Network or for ordinary use it makes no difference as far as nodes and their resource usage is concerned.
However, claiming he’d rather people don’t use it gives an easy dismissal to the fact they aren’t actually using it and to the fact it’s providing as good as no extra capacity.
Segwit transactions amount to 0 in most blocks, with 1 or 2 at most being found on average. The one bigger than 1MB block that has been mined has only 32KB of extra capacity.
That makes segwit a complete flop at this stage. So changing the tune like good politicians to don’t use it anyway might perhaps be the only option for our brave new Bitcoin Core currency.