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First challenge to anyone new to Crypto. Between BTC, BCH, and BSV, which one is the original protocol? If you can't answer that yet, you have much to learn.
Bitcoin was a global scale ledger, simply put, it is digital storage space where users creates demand for it, and miners supply that demand for a fee. At scale, billions will transact on chain, and miners then have the incentive to compete to do more volume for less cost per tx
This is the fundamentals of Bitcoin economics, it is free market competition. This is why it can work because it is based on supply and demand. Coin reward are diminishing and time limited because it is early incentive and a mean to distribute the coins. Hence not a constant.
The sole innovation of Bitcoin was the immutable nature of a chain of digital signatures. It is pseudonym or private, but everyone can be held responsible when the laws requires it. And because of the nature of transparency, it brings honesty. It makes honest of men.
The crypto space in general lacks understanding of such system by far. Many are young programmers. They thought their ideas were cool, but none of them take into consideration laws and economics. This is why many will fail simply because they never started it on the right foot
Bitcoin was decades of work way before 2009 release. It is not a system where you can fork off, experiment and thinking it can work. It is a system carefully crafted to work under the laws and it is a system based on economic competitions.
Bitcoin was designed to witness firsthand, write once and keep forever immutable. It is what businesses are required to operate under WORM. Write once, read many. 17a-4.com/regulations-su…
This is why side chains cannot work because Bitcoin no longer witness. It becomes a spreadsheet that simply records whatever the side chain tells it to. You lose the single most important characteristic of an immutable chain of digital signatures. Artificial block size limit!!
This is why Bitcoin can only work by scale on chain the block size. As mentioned, by design it is economics, block size scale is determine by the miners the free market on how big they want to accept and for what fee they are willing to take.
Simple example, say 1 million transactions per block, at 0.01$ per transactions. We're looking at 10k$ of fees as revenue for the miner who wins that block. Due to the value of blocks other miners will likely join the network to compete and they may even do lower fees.
It is exactly due to competitions that lowers the cost. And it is also the reason why private chains can't compete. Private chains has to run their own infrastructures, human resources.
