Lightning Network will always be expensive

Lightning Network will always be expensive

By francis105d2 | Bitcoin Cash Club BCH | 15 May 2021

Because the way Lightning Network works you will discover that cheap lighting network transaction is a total lie, but you must do your research to discover that and to also think critically in other to find out the short comings of such vaporware. Lightning requires users and node operators were node operators do all the routing and users pay all of the fees, and for a small user it will be harder and harder economically to compete.

But for nodes operators to gain the system and actually have an income source they also need that on-chain transaction fees go high so that they can charge for providing liquidity, if transactions fees are under $1 the Lightning network operator with large amounts of Bitcoin will provide liquidity almost for free, but once on-chain transaction fees increase the game chances in favor of the node operator.


If on-chain transactions fees are let say $10 at that point a node operator can increase the base fee plus the routing amount in each transaction to a point that Lightning network transactions will become even more expensive than on chain transactions and the excuse it will be that you are paying as high as on-chain because your transaction is instant and that instant settlement deserves a premium.


Node operators that provide liquidity are there for the whole purpose to gain an income by routing payments, and once transactions on chain are expensive they can justify a higher and higher fee on Lightning as well. Well connected nodes will open super nodes between each other so that if you don't know the node operators it will be hard for a third party to compete because they will have large capacity where they don't need to close or open channel that often while small operator will be force to try to be creative on keeping nodes well balance, to a point where it becomes too hard to keep providing liquidity for small nodes and only big super nodes will be left.


Not to mention that Lightning requires a know how to of computers so regular users will be force or it will be much easier to just use private nodes or not routing nodes, this creates a market for node operators with big pockets and users that have no other choice but to use private nodes or custodian wallets like wallet of satoshi. This will bring centralization to the network, and this will be a point were regulators can enforce regulation because large nodes operators will be already invested and would want for their investment to pay dividends so they will comply just like fiat to crypto exchanges are already doing, you and I already know exchanges like Coinbase, Gemini and many others give your information to the government for future enforcement and regulations. So Lightning nodes will do the same.


Back to fees on Lightning, for transactions in large nodes within the same node transactions could be call home in transactions and outside such nodes roaming transactions that will carry a heavy regulation and fee, and you can bet 0.01 btc will be consider large and you will be charged a handsome fee for it.


Meanwhile Bitcoin Cash will be processing transactions for under one penny, and I think that eventually people will understand that such large fees are an issue or that will be an issue and so they will move on to other altcoins, that's why websites like will have a greater usage where people in the future will read those in the past writing their ideas.


You don't need to write predictions you just need to write your ideas and leave them for future readers and they will be the ones that will judge you, because the future at the end of the day is the unknown but we all can use imagination to try to see it just before it happens, but I think that eventually people will be moved for high transaction to something with less fees, and even when the rich are buying Bitcoin today and not altcoins they will be force to adapt or they will sink together with the old world.


The crypto space is the place where ideas never die, if one day you think on giving up on Bitcoin Cash remember that is the idea of a peer to peer currency for the whole world and not only those who can afford it, it could go down in price thanks to propaganda and market manipulation but as long as people like me and you love the idea of peer to peer currency for all rich and poor Bitcoin Cash will continue.


I would like to also give thanks to those who so far have tipped me, I thank you and I will thank you even more because you are giving me your time by reading my articles, I am humble by it and will try to write my honest opinions and ideas, it is for the future and future holders that I write, but remember as you are the present you will be the future.

Thank you very much, God bless you all.

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