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31 sats \ 0 replies \ @justin_shocknet 7 Mar freebie \ on: What USD amount do you feel comfortable holding in a custodial Lightning wallet? bitcoin
It will be interesting how the bands for this squeeze as spot price rises...
When Bitcoin is $500K you'll find it uneconomical or even difficult to send small amounts, of less than $10 or so, due to how the real costs of settling HTLC's shapes network fees and routing.
On the other hand, as usage in-terms-of-dollars increases along with spot, the cost-benefit shifts in favor of self-custody.
LSP's will find it increasingly difficult to sell channels to hobbled devices like mobile nodes when a channel costs rise to $50+, and have to tie up increasingly more dollar-denominated capital.
At the same time the TCO of running a real home or cloud node, being only a few dollars a month, falls on a relative basis.
These are just a few reasons the mission for shockwallet and lightning.pub is so important, making remote nodes great again, by giving users an ability to share that node with friends and family to recoup self-hosting and channel costs.