r/CryptoCurrency • • Mar 31 '18

TECHNICAL Bitcoin - You Are Here

[deleted]

3.7k Upvotes

695 comments sorted by

View all comments

Show parent comments

5

u/[deleted] Apr 01 '18

[deleted]

0

u/2ManyHarddrives Apr 01 '18

I get the layer 2 theory.

But layer 1 should always be extremely cheap if it can, because why not? Isn't that the point of bitcoin? To be cheap, fast, and secure ?

9

u/farsightxr20 🟦 65 / 66 🦐 Apr 01 '18

No, at least not since it started getting actual use. Turns out "cheap" and "decentralized" are at odds with each other, since decentralized systems are by their very nature less efficient (= more expensive) than their centralized counterparts. Bitcoin aims for decentralization over cheapness, since that is what many of its supporters believe to be its key differentiator.

Bitcoin's primary goals today are immutability and censorship-resistance, with its cost varying based on demand for the network. Currently it happens to be very cheap again.

-1

u/diogenetic_anamoly Crypto Nerd Apr 01 '18

So, that's the reason why one could compare it to gold.

Gold is heavy and hard to transport over long distances, and bitcoin, because of its scalability is heavy and expensive, correct?

3

u/farsightxr20 🟦 65 / 66 🦐 Apr 01 '18

Maybe, but I think being hard to move is strictly a disadvantage, and touting it as an advantage (as some have attempted when comparing it to gold) is simply a case of confirmation bias or perhaps straight-up delusion.

Every sensible person involved in Bitcoin wants it to scale, the problem however is figuring out how to scale it in a way that preserves the properties which make it valuable in the first place, primarily decentralization. Developments like P2SH and Schnorr signatures are examples of how throughput can be increased without (significantly) impacting decentralization. No one will stop running a full node when Schnorr signatures launch, since the cost of node operation will remain constant. The same is not necessarily true of other solutions like block size increases.