2260 sats \ 1 reply \ @netstatic 13 Dec 2023 \ on: Is it a problem that lightning is so cheap to use? polls
Discussing things in dollar denominations is not useful to this kind of analysis. If Bitcoin goes up in USD value, so will the routing fees so dollar value is irrelevant. Instead the question to ask is whether fees are too small with respect to the fee rate needed to open/close channels and the payments that are made.
The answer to that question depends on a number of different factors like how long the routing node is intended to be up (which impacts whether the opening/closing fees make you net negative), the time dedicated to the maintenance of the node (a form of labor cost), and the proportional risk of each payment potentially jamming your channel (which you should get compensated for).
Personally, I don't think this is a problem until we see a significant amount of the network force-closing and/or a dramatic decrease in channel openings. Fee mechanics are still really important and I think not adjusting some of these models can result in problems in the future though.
thanks for your input here. Lots to consider that I have never considered! Fee rate is going to get NUTS when adoption moves from 0.1% (where it is now) to say 5 or 10%. Not to mention BitVM (which I am still learning about)...when BitVM is fully operational the game will theoretically change...smart contracts fully enabled on Bitcoin means absolutely no need for other protocols. The base layer will be so highly sought after I think fees will go parabolic.
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