A monetary item is an asset or liability carrying a value in dollars (or any other fiat currencies) that will NOT change in the future. If I borrow $1,000 & buy a piece of furniture, I still need to return $1,000 in the future even though that piece of furniture appreciate in USD (USD losing purchasing power).
A piece of paper with printed "$10" on it has a monetary value of $10 now & in the future. Similarly, a Bitcoin address with 1 bitcoin in it has supposedly a "monetary value" of 1 bitcoin (regardless of its USD value) now & in the future.
In comparison to USD, however, Bitcoin may be easily considered as a "non-monetary good" which can rise or fall in value (i.e. USD).
The ONLY way that Bitcoin can become a monetary item (monetary utility), so that "cheap" or "expensive" becomes meaningless in reference to it, is by MORE ADOPTION.
An effective way to prevent Bitcoin from mainstream adoption as utility of money/currency is to make it more difficult to use one of which is high transaction fees (as we witnessed at the end of last year).
The rise of prices in December could have very well been continued, however, due to ridiculously high fees, IMO, it crashed down in half (& continues for now)!
Source:
sadly
Except, right now the BTC transaction costs are again dirt cheap.
question is: will fees be exponentially higher again when it reaches 20K & mempools are full?
Probably not, maybe if it goes much higher. One of the main reasons why fees are now lower is that segwit is used more and more.
interesting article (fyi)
https://medium.com/@mariabustillos/you-dont-understand-bitcoin-because-you-think-money-is-real-5aef45b8e952
Hmmm, I read somewhere that with segwit we are at around 30 transactions/sec, because while it frees up more block size, it also takes less space. I could be wrong. I hope the Ligthening Network will be soon operational for everyone.
LN is not Bitcoin, is a third party patented technology!
Yes, but when it will be used it will lessen the load on the BTC blockchain.
I did the math below & it shows it increase the throughput by 4 TPS.
Segwit conservatively frees up 60% of block size.
Let say each trans is 250 byte with 1MB block
60% X 1MB = 0.6MB X 1024 X 1024 = 629,146 byte
629,146/250 = 2,517 transactions
2,517/600 = 4 TPS
we get 4 transactions more per second....I don't think that should be called scalability!
True words. However my hope is that a 'flipening' will happen soon. When one or several other coins take the market lead. Bitcoin has too many problems; There are much better technologies waiting to be adopted.
correct...I hope flipening happens by BCH goes more higher than BTC comes more lower. Monero is also a good alt.
Bitcoin transaction costs are very very low now.
question is: will fees be exponentially higher again when it reaches 20K & mempools are full?
Should not be this way anymore, especially with Lightning network+Atomic swaps
LN is not Bitcoin & you eventually have to pay for it, just like the way you pay for internet to ISPs
LN is a protocol that aims to scale and accelerate blockchains one of the functions of LN are micropayments.
Understand, but what you're saying is not relevant to what I said....LN obviously scale Bitcoin "off-chain".......it's like you take your golds to the banks because they're heavy (high fees, "artificially") & banks give you paper money (fiat) so you can easily carry them around & pay in nickles.
1 cent per transactions again. If ETH had the MC of bitcoin, people would also be crying about transaction cost
"again"? will fees be exponentially higher again when it reaches 20K & mempools are full?
Also ETH is worst than any other crypto....Ethereum Foundation bought up 70 Million ETH back in 2014. Add this to the PoS that they will later implement & you see an entity worst than central banking system.