Bitcoin is "hard money", the hardest the world has ever seen. People prefer to spend softer money (like paper currency) and hoard hard money (Bitcoin, gold).
If there was money less trusted than the US dollar that was widely accepted, and US citizens had it, they would choose to spend that money before US dollars.
In countries with very poor fiat currencies, people will hoard USD and spend their local fiat currency where ever they can, only spending their USD when they are forced to, because it's better money.
There's more to money than spending. Saving is a valid use case for money. Turns out that Bitcoin is a best fit too. The daily tx limit doesn't really concern this use case too much. The spending use case is much more impacted by it though.
One might suspect that if there is enough demand for the spending use case, then some other solutions might develop to increase the transaction throughput for that use case.
>One might suspect that if there is enough demand for the spending use case, then some other solutions might develop to increase the transaction throughput for that use case.
The only valid solution is to increase the block size limit, as stated in the conclusion of the lightning network whitepaper. A layer 2 is still constrained by layer 1.
Maybe the "spending" use-case doesn't need the hardness properties that Bitcoin has, but the "saving" use-case does.
I don't like the idea of undermining the latter to promote the former, when it's not obvious the former is even in high enough demand, and when it can be done in alternative ways (L2 solutions, sidechains, custodians etc).
Increasing the block size limit is not a solution to anything.
If there was money less trusted than the US dollar that was widely accepted, and US citizens had it, they would choose to spend that money before US dollars.
In countries with very poor fiat currencies, people will hoard USD and spend their local fiat currency where ever they can, only spending their USD when they are forced to, because it's better money.
Governments still demand payment in hard money. Venezuela has been raiding their gold reserves to pay Iran for gasoline https://www.aljazeera.com/ajimpact/maduro-tap-dealmaker-sanc...