Bitcoin LN vs. Bitcoin Cash the real Bitcoin. BCH wins.

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Avatar for francis105d1
1 year ago

I sold some Bitcoin Cash to get some BTC to write this article and explain with a clear example why Bitcoin Core BTC won't be and is not the solution for the scalability of Bitcoin. I would say that I am happy that I am holding onto Bitcoin Cash as it is the real Bitcoin that works and doesn't require a computer science degree to use as a peer-to-peer currency, nor does it cost an eye and leg to use either. Pretty much one-cent transactions are possible only on the actual Bitcoin BCH.

To use LN correctly and in a non-custodial way, you must have a wallet that lets you control your channels with your private keys. This way, you are making sure that no central entity can seize or forbid your payments, and if you manage your channels, you don't have to ask for permission whenever you wish to use your funds. But you will have to pay on-chain transaction costs to have that privilege. At the time of writing this article, transaction fees on BTC are around 1 to 3 satoshis/Kb or $0.05 to $0.21.

First, you will need to send your funds to your wallet and open your channel, which means two transactions. When transactions go up in price, that will mean double that open a channel, and you must also reserve some funds to close the channel. That will mean that if regular transactions are $10, you will pay $30, plus your channel liquidity. You need at least 0.004 because many nodes are not connecting to users with less liquidity than that. Why is that? It is straightforward. They know your channel liquidity will suffer when transaction fees go up, so they want to ensure you have enough money to pay for the closing channel.

Using LN properly won't be cheap, and routing fees will only increase as on-chain transactions increase. Some Bitcoin Core maximalists are already saying that the higher routing cost is already reasonable because it means you are paying a premium to move your funds fast. It means that Bitcoin fees won't get any cheap no matter the network, and they are lying to people so that users that know no better put their hard-earned money on that network, and they are hoping that people have not read articles just like this one.

I left my channel open because I plan on sending some satoshis I am getting for free from the Bitcoin bouncing game or something like that. As on-chain fees go up, that small balance will be eaten up by the reservation fee or the fee needed to close the channel.

Also, note that I sent some funds to this channel by utilizing some funds that I was holding on my Pheonix wallet, and I ended up paying six satoshis to move only 114 satoshis. I carry those funds so that they are in a wallet where I control my keys. As you can see, LN and Bitcoin are all about fees on top of expenses.

If you want to use Bitcoin and LN in a decentralized way, you will have to pay a pretty penny for it, and it will only become even more expensive over time because node operators want to gain some income for routing payments.

Even if you find a node willing to accept 0.001 channel liquidity once fees go beyond $10 on-chain, that channel will be useless, and whatever amount in that channel will be reserved and won't be usable until costs go down. Now, Do you think people in El Salvador will have that kind of money?

Live in El Salvador or any other nation where salaries are $20 or less. You won't be able to use Bitcoin LN correctly, and economic forces will force you to adopt the usage of custodian services. With custodian services, you don't have to worry about channel liquidity, opening and closing of channels, and your money won't be unusable when high on-chain fees go up. But instead, you will trade off.

With custodians, you have the possibility of Bitcoin printing in the future, and you have lost the advantages that Bitcoin could have offered you besides price. The only benefit you will have is that your tokens will be worth 1 to 1 to Bitcoin, but once people realize that Bitcoin Core BTC doesn't work as a payment network, the price advantage that BTC now has will be lost in the future.

The superiors alternative.

The superior alternative is Bitcoin being appropriately used, and Bitcoin Cash is Bitcoin because I don't need a computer science education to use my money. You and I don't need any central bank, account, or government sponsor service to use my money as I see fit. Using LN costs me around $1. In the future, that will be even more than $100, but with Bitcoin Cash, the actual Bitcoin cost is $0.01, on-chain no buts, no nothing, my money when I need it.

Bitcoin Core fees are as low as $0.06 because the chain is not being used, but eventually, those fees will go up and reach $50. In the future, Bitcoin Cash BCH, the real Bitcoin, is making transactions for as little as $0.01. If your transaction has many inputs, your fee will be more but not more than $10. If you were to make a significant input transaction on BTC instead of $10, it would be $1000.

One more thing, before the end.

Bitcoin Cash is the real Bitcoin because it works with meager fees, and with zero-conf, your transactions are as fast as lightning.

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1 year ago

Comments

You have said it all, what note can I say than five big thumbs up for the real BCH especially the speed of transaction.

$ 0.01
1 year ago

It does not matter how many times you say to yourself BCH is the real bitcoin, it is not.

$ 0.01
1 year ago

Send me one penny on BTC like I did with BCH, and see what the real Bitcoin can do.

$ 0.00
1 year ago

lol dude... less than a penny... keep ignoring the LN

$ 0.01
1 year ago

Wallet of Satoshi or Chivo aka banker's Bitcoin not real Bitcoin. Fake Bitcoin and probably even fractional reserve Bitcoin . Because opening my own channel will cost at least 0.001 BTC on liquidity plus, opening channel and closing with routing fees on top.

I am pretty sure one penny won't be enough to do all that.

Once again I will send another penny maybe you can guess what works and what doesn't.

A real Bitcoin means I can send you $0.01 value without worrying about fees, that real Bitcoin is it's BCH, not central banks Bitcoin BTC.

$ 0.00
1 year ago

I dont use custodial wallets... like I said, I can send you less than a penny. check https://stacker.news/

$ 0.01
1 year ago

Okay, you have your channels, you prepaid for that, but if I don't have enough money, I can't have my channels, which means I will be forced to use custodians even when you have your channels.

If more and more people are in the same condition as me, eventually, we, the ones without a channel, enable the custodian to scheme fractional reserve practices or outright print Bitcoin because not enough people can afford their channels.

That way, Bitcoin becomes less than what Satoshi described and becomes just another bank system, like the one El Salvador has with the Chivo bank account.

$ 0.00
1 year ago

download muun wallet, give me an invoice... job done... a honest question, why is so important for you send 1 cent on-chain?

$ 0.00
1 year ago

I don't send 1 penny transactions all day around, but trades in the future will have to be affordable for all classes if we want to get rid of banks. Bitcoin with 1MB blocks can't do that, and LN with custodians won't cut it either. We need a Bitcoin that can be used without relying on custodians.

I have a Chivo wallet because I am from El Salvador, I have a Wallet of Satoshi, and they are all just banks disguising themselves as wallets. Still, they are bank accounts, and the Bitcoin community glorifies banks' adoption as if it was the real deal.

I could send you a Wallet of Satoshi invoice, but I know that I am not using Bitcoin; I could send you an invoice from Chivo wallet, but I know I am not using Bitcoin; I will be using a private ledger that may or may not be using fractional reserve Bitcoin or worst printing Bitcoin.

This kind of discussion wouldn't be possible on r/bitcoin because they would ban me even when all I am saying and pointing out are facts.

$ 0.00
1 year ago

First of all, chivo is custodial and ask KYC, I cant recommend something like that EVER that does not represent the LN or bitcoin, stop assuming that both things are the same. Second WoS is custodial with no KYC, to me that's a same level of security of using bitcoin.com wallet close source that ask your apple and google account, complete centralized with central servers to sell the myth of instant 0conf. disgusting I know , but that's the best you have. Third you have open source non custodial wallet like muun or phoenix, who manage the LN for you, from this here I can recommend LN if you want a self custodial approach. Then you have electrum wallet, you control the creation of your channel, you are changing some easy to use features to self control. Then you have full nodes like umbrel. open source, you broadcast the transaction yourself. you create the channels yourself. that is the real "my own bank experience".

What you are selling with BCH is a closed source centralized wallet that connect everybody to the same server that is NOT what bitcoin should be, that's is worst even than litecoin or dogecoin or other small blockchains.

Like I said, I can send 1 satoshi that is not an issue with bitcoin, also 1mb blocks? where? bitcoin (the real one) have years with a block size increase. check yourself https://mempool.space/

$ 0.00
1 year ago

I don't use bitcoin.com, and I use Ledger. I have run my channels with the LND command line, Zap on top of LND with a neutrino node, and Nayuta Core for mobile and Simple Bitcoin Wallet.

Please don't take me wrong I have run almost all the LN wallets, custodians, and self-custody (eclair desktop). I don't use LN not because lack of knowledge to run my node, and I don't use Bitcoin or LN because the idea is wrong, and it is not Bitcoin. It is a banker's coin at this point.

And when I say bankers' coin, I mean it as my research has led me to that conclusion, especially when I realize that me running LN on the command line is not something most will do; as such, I am at a higher ground of understanding because I know how to run the damn thing.

In order words, I don't write because I heard it somewhere else; it is because I found out on my own by using the software.

$ 0.00
1 year ago