RE: BTC/LTC Hybrid Multisig
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I don't think BTC's fees are necessarily bound by its spot price, there is no linear relationship at all between these two variables. In fact, demand to transact in the network plays a much bigger role in fees than its spot price, and the price going to a million dollars doesn't mean anyone's getting priced out of transacting.
It can easily cost over 10k sats to send a transaction
That's about a hundred bucks, and it very well may peak beyond that point all the way up to 500 bucks. But this is the beautiful thing about supply and demand: its self-regulating! No one in their right mind is going to keep transacting at those fees. This is why those ridiculous fees are so short-lived. Those historical fee charts shows that these peaks last for about 2 weeks... every 4-year cycle... which segues into the next thing i wanna talk about:
I also don't think we're rushing for a solution to a problem that, standing to reason, will not probably exist, otherwise Bitcoin's backend would already be bloated with nonesense prophylactic code for the mother of all edge cases.
For the most part I've already confirmed this logic in the original post.
This is very much a back-burner idea.
They definitely will if Bitcoin gets actual adoption from banks, governments, and corporations.
No one's going to care about a $1000 fee if millions are being transferred around.
The real question is if multisig is actually better than just using an exchange that's already been around a while and has a reputation. If so then exchanges themselves should just be multisig (which they already are when concerning cold storage). I think it's far more likely that many just abandon BTC completely for the smaller cheaper networks.
At the same time a Bitcoin debit card works in largely the same way (except centralized).
Using the debit card spends USD and that amount is deducted from the BTC paired to it.
The hybrid multisig approach is definitely interesting, and I think it could be done using some smart contract wizardry if you wanna go the decentralized route, or some backend code integration where exchanges collaborate together in order to zero out the fees of transfer.
I got a couple of concerns myself regarding Multisig. one of them is that you NEVER EVER want the on-off ramp to be volatile in its spot price or lose its liquidity permanently. You want something resistant to the sways of the market in order to avoid having to constantly transact BTC to top off the checking account when it goes down in value to maximize efficiency and be as frictionless as possible within the system. That means %99 of all possible crypto candidates are off the list. This leaves us with stablecoins.
I don't imagine the anyone outside of Maxis are going to use this solution rather than simply abandon BTC, and maxis want their cold hard BTCs in their own wallets, not shares of it in a smart contract liable for security breaches.
BTW I don't say this often but I love your posts and the ideas you present, One of the only guys i open up Hive to check out.