After years of debate and endless arguing over how to address bitcoin’s scalability problem, the currency has seemingly finally found a solution: lack of interest in transacting with it.
While many protested daily demanding bitcoin’s blocksize limit is increased above 1MB, the actual blocksize started falling and falling once the debate was settled to now just half a megabyte.
Soon, even Luke-jr, the Bitcoin Core developer and Blockstream employee who believes in absolute monarchy, may get his wish of a 300kb bitcoin blocksize.
Then we can finally say the problem is solved without needing any fancy solutions like sharding or academic models and stimulations studying Moore’s Law.
Because far more simply, the only solution utilized effectively so far by bitcoin has been to make people not want to transact with bitcoin anymore.
Such stroke of genius no one could have imagined, with the elegant solution so fully addressing the triangle of capacity, security, and decentralization.
The latter two remain unchanged, as does the former, and apparently when you keep capacity limited, people eventually sort of don’t want capacity anymore.
No one could have thought of it, for only in hindsight is such breakthrough obvious. We do, however, need to analyze a certain parameter. Whether this simple solution would work even if an invoice system like the Lightning Network (LN) is not launched.
We also need to analyze whether LN has to be sort of unusable, because we do not quite know how the capacity parameter in the triangle would behave if something like LN actually worked in a non-lab setting.
By work we mean as in people want to use it, rather than they might use it if we assume they lock some money and then invoice each other a very specific sum without the ability of sending more or less or even the same sum twice.
Common sense however alludes us in this matter because we thought demand would actually skyrocket if there is no capacity. So now we have been proven wrong, we’d have to think demand would fall if there is capacity.
Or do we have it the wrong way around? Who knows these things. All we know is we can’t possibly report this news with a straight face, so making it all satire, top to bottom, except for the one fact that the blocksize has fallen to the lowest level it has seen since 2015.
Many businesses now do not accept bitcoin for payments, so no wonder bitcoin’s use is so low despite its price being 10x or more since 2015.
There’s just not much to do with it, with many use cases now gone in bitcoin, including remittance, because if they came back they would become unprofitable.
And while you can say transactions are down in other cryptos too, we can’t really think of any other where this considerable detachment between price and transaction volumes can be seen.
Other cryptos, moreover, have a plan, while bitcoin is betting it all on an invoice system which has yet to prove it works.