As the bitcoin price rises, would you expect this $10 fee to remain $10 or would that go to $100 or $1000? Wouldn't that price out average person from layer 1?
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as prices rise, the value of the fees goes up. We cannot predict nor calculate a dollar amount, but we can predict and calculate the amount in sats. As the value of the fees goes up, less people will transact, causing the fees to go down to normal levels again.
I try to think of it like interest rates, same effect on the volicity of money in a sense.
Open to disagreements.
It’s hypothetically $10. That hypothetical $10 million TX costs a lot more if it’s coming from many UTXOs.