Hey Jessiethreum Holders
There is so much lip service when it comes to crypto being for the unbanked, and that is cheap and fast, but there's nothing cheap and fast about chain congestion on the likes of Ethereum where it hurts to pay $17 to make a transaction.
Not too long ago, BTC was up to $55 a transaction and insane waiting times. We'll never get to the unbanked with fees like that, for me to move my currency off an exchange or to an exchange. I am being burned.
We talk so much about not your keys, not your coins but we're punishing users to doing the right thing and taking their coins off exchanges, fees are getting out of hand and its starting to encourage and reward bad behaviour.
Why would I want to give up money to fees if I can leave it on Binance? Only a long term HODLr would think it's worth it and of that, there aren't many. As more assets come online in various chains, some are getting stuck, how many tokens on ETH are now not worth moving because of the gas price? It seems an inefficient way to transact if you ask me.
Wrapping it up
I've spoken previously about wrapped tokens which I think will continue to become popular; I won't be surprised to see more of them on other smart contract chains and even more swap options on HIVE in the future. I think as fees continue to be a problem, we will need a fee market and wrapped asset market.
A user can then transfer his asset via the chain with the cheapest fee at the time, and these chains will arbitrage their network efficiency between one another.
For example, I can send swap.BTC to a user on HIVE for zero transaction fees. What would that do for ETH holders today, if they could use a Swap.ETH on HIVE and send their ETH around bypassing transaction costs and performing micro-transactions such as tipping users in ETH.
Representative assets are here to say
In future for example having BTC and wanting to transfer,
- I could do it on-chain to secure it in my wallet.
- I could do it on the lightning network for a quick cheap transfer.
- I could transfer on ETH because I want to use DE-FI or do some arbitraging
- I could transfer it to HIVE to do some tipping
- I could transfer BTC via TRON for gambling
- I could transfer BTC via EOS for dapps Id like to use
Having the ability to use BTC on any chain opens up so many opporuntites for users and I think that it's only going to get bigger. Cross chain assets are going to be all the rage and exchanges and DEX's are going to be busier than ever as we create a subsystem for atomic swaps.
It may start the fees race and as users look for the cheapest way to transfer, it brings down cost, but could lead to more unbanked users finding cheaper ways to get into BTC and hold an asset that is shaping this industry.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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