The Real Problem with Bitcoin and Why $NANO is Inevitable
As a former Bitcoin maximalist.
In December 2017, Bitcoin network fees reached $55 per transaction. With wider adoption and price gains, it is likely that the Bitcoin fee will approach and even exceed $500 at the peak of the bubble top as everyone is going to rush to transfer their Bitcoin to the exchanges to take profits/stop losses.
The argument that Bitcoin cannot be used to "buy a cup of coffee" is long forgotten. At $500 fee, any transaction under $15,000 will become impractical. The proposed solution in the Bitcoin community is Payment Rails, whether it is the Lightning Network, PayPal, Visa, BlockFi, Celsius, Square, Banks, etc., essentially trading in quote unquote SYNTHETIC Bitcoin off the blockchain.
To avoid these fees, such custodians will offer to custody Bitcoin and allow for "ownership" of and payments in Bitcoin without paying the network fees. This will lead to extreme centralization of Bitcoin by these custodians.
Since withdrawal of Bitcoin to a private wallet will be highly disincentivized, as it will require the payment of these network fees, the custodians will realize that 90% of actual Bitcoin is never withdrawn.
As in the case of Gold, such custodians will be able to issue loans that exceed the amount of Bitcoin in reserves, which will result in Fractional Reserve Banking. As a result the amount of synthetic "bitcoin" will exceed Bitcoin's 21,000,000 max supply. There is no mechanism that can prevent this scenario.
To summarize, Bitcoin high network fees will cause:
1) Centralization and concentration of Bitcoin
2) Elimination the "bearer's asset" property of Bitcoin
3) Recreate Fractional Reserve Banking System with Bitcoin as base layer, instead of Gold
So there is no need to try to forcefully convert people into NANO, NANO will grow organically due to its superior properties and will become the primary beneficiary of both high fees on blockchain network, such as Bitcoin and Ethereum, as well as extreme centralization of Bitcoin ...
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