Anyone who wants to use Bitcoin as fully self custodial freedom money which acts as their medium of exchange can. The problem we face is not (currently) technical, it’s social. Very few people care enough or know enough to hold their own keys, much less run a node and verify transactions. I like the CTV model for further scaling in the future, but with that said, people are always going to be free to interact with Bitcoin through proxies. ETFs, Bitcoin banks, Bitcoin Visa cards, ECash, were always inevitable. Even if Bitcoin could support infinite transactions at zero cost, I suspect over half of the world would still prefer to use some form of bank or ETF wrapper. That’s not a knock on Bitcoin, it’s a knock on ourselves.

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The fees make Bitcoin inaccessible to vast numbers of people, arguably the ones who need it most. Even at $6 a transaction, that’s a days wage in some parts of the world. Lightning could work, but then the argument of self-hosted freedom is out of the window, because even less people are running or can even afford to open their own channels. Almost no one runs a node. I would guess that the 19,000 or so accessible nodes are run by less than 10,000 people. It’s a tiny minority, and this won’t change because people don’t care as much about this side of things as they do about getting rich. The numbers speak for themselves. The issue is see approaching is that proxies for interaction introduce the same barriers that the system set out to escape. People can censor, deplatform and charge whatever fees they want via the proxies.
Jose Sammut's avatar
Jose Sammut 1 year ago
If you can't afford on-chain, you can use custodial lightning, preferably ecash, until you improve your economic position and the security of self custody is worthwhile your increased savings. Eventually on-chain wouldn't even have capacity to on-board people to lightning, but I'd fancy some upgrades to lightning's protocol allowing channels to be opened natively on lightning or to Bitcoin itself, like covenants. If you don't have savings to lose, Wallet of Satoshi works just fine.