Cheap transactions among the many fuel more innovation than expensive incentives aimed at the few.
Second, there's unbounded demand for really cheap block space (cheap transactions).
File sharing requires extremely cheap transactions, several transactions per second per client, day in and day out, with monthly transaction costs being very small per client.
Altcoin promoters often point to bitcoin as a slow, antiquated cryptocurrency that lacks advanced features such as anonymity, smart contracts, or cheap transactions, but according to Blockstream mathematician Andrew Poelstra, there's solid reasoning behind Bitcoin's alleged lack of features.
Because few existing brokers charge more than this, Boom could not offer the usual enticement of online trading—cheaper transaction costs.To make matters worse, competition arrived with a vengeance.
Cheaper transaction fees through Apple's mobile payments network could help the Apple Pay system for the same reasons; if it costs a retailer far less to convert an Apple payment, they would want to encourage more of them.
"This will blend markets together globally, which is to the individual investor's advantage, and possibly result in cheaper transaction costs," said John Markese, president of the American Association of Individual Investors and an N.A.S.D. board member.
So, the challenge for our industry has been to survive on these much, much cheaper transactions".
Cryptocurrencies offer money that's not at the mercy of a central bank, faster and cheaper transactions, electronic money for the unbanked, digital funds protected from identity theft, easier cross-border payments, and reliable means to do a transaction without needing to trust the other party.
Of course, a question some may be asking right now is: Why can't cheaper transactions be built into the base layer?
