[OC] World Population vs 2.1 Quadrillion Sats
https://ift.tt/gF1H8T4
I do want to point out one thing that may be of interest, related to the importance of L2.
The image is of course intended to show how there’s plenty of sats to go around. Visually it does seem so. But when we do the math, we see that the average sats per person is under 300,000. And we all know that a 500 byte txn with a low 10 sats/byte fee is 5,000 sats. We also know that money is not evenly distributed, and usually follows a *very* fat tail, so it’s likely that, just as in fiat, e.g. a majority of people will have well south of 50,000 sats. That means a txn fee of 10% or more of what most people are likely to have.
In fact, if you assume Bitcoin has become the global currency and all wealth is on the chain, a significant chunk of the population has only **a few thousand sats** (divide ~1q in global wealth into 2.1q sats, 1 sat = $2.1, $6k or less is quite common in developing nations), so they can’t even make 1 transaction. The rest of the world doesn’t fare much better.
We can posit a lower txn fee, but as the halvings go on and block size remains constant, transaction fees are generally how miners get paid, so fees can’t go down too much.
Hence L2 and sidechains being not just a nice to have, but a requirement for such a future.
Cryptocurrency
