Bitcoin Core transaction fees are a crisis waiting to happen.

I tried to use my custodian ChivoWallet a few days ago when transaction fees were below $2, I tried to send my funds on-chain and my transactions were declined, the amount at the moment was around $28. I could send my money out using custodian services Chivo to Wallet of Satoshi, and from WoS to Bitcoin Cash, and once it was on BCH to fiat value.

El Salvador's government is supposed to cover the transaction fees for citizens, which means right now the government will be bleeding money at a $4 transaction rate, I don't know for how long the government will be able to eat that cost, and if users are willing to eat that cost once the government gives up, you can almost bet the Salvadorian government won't tell citizens that those transactions will now have a cost citizen will have to discover that on their own.

You can ask why I am not using my own LN channel, well because at the moment I don't have a channel with liquidity to receive funds, and that means if I want to receive LN payments without custodians I must eat at least two transactions cost one to send to my Blixt Wallet and another to open the channel at the current rate that will be at least $8 out of my $28. And that is something everyone trying to use BTC will face regardless of where you are.

Currently, LN custodian services are filling out the hole that on-chain transaction fees are leaving, but eventually, that will also fail. At some point in the future, you will have an FTX crisis. After all, a custodian could lose funds to a LN hack or attack because they have enough money in the pot so going rogue makes sense because they will have a lot to steal.

Every time you use a custodian you risk not seeing your money ever again, and that point will be made more visible once a future LN custodian decides to steal funds and run away.

The large holders of BTC those that have a lot of money won't see this issue because they have enough money to pay for the transaction fees, but the person with $100 will notice this issue first, I just hope they find this article and realize like the others are already using the Bitcoin BCH version which doesn't need technical know-how like LN, and without outright scammy transition fees that only help the rich get richer, and corporations like banks to take over the Bitcoin protocol.

ChivoWallet, Wallet of Satoshi, and all other custodians are banks, they are banks trying to disguise themselves as wallets, if you need permission you have your satoshis in a bank, and as such sooner or later one of those banks will decide to use fractional reserves or ample reserve practices to your satoshis.

Bitcoin BCH is the version of Bitcoin that doesn't have high transaction fees nor it needs any third-party custodians to use it as money like the competition does.