BTC has a block size limit which means it can at most process 7 transactions per second. This is a dangerous vulnerability which has been widely known but rarely discussed in the media.
Basically, an attacker with state level resources (think China, India, Russia as examples) can block transaction processing by sending transactions between the wallets they control with high fees. For example, if they sent transactions with fees set at the level of say $200 USD for each transaction, no one else’s transactions would get processed as these fees would outbid the other transactions present in the memory pool.
This is no doubt an expensive attack. With 7 transactions per second at 60 seconds per minute and 60 minutes per hour with 24 hours a day, this equals 604,800 transactions per day, which would make the attack cost $121 million per day, or $44 Billion per year if set at $200 USD per transaction. If the fees had to rise further to $2000 USD per transaction, it would be $440 Billion per year. And at $20,000 USD per transaction, it would cost $4.4 trillion per year.
This is expensive, but the US government has over $35 trillion USD in debt. So this attack, even at the high end is within the budget of governments worldwide. So the financial cost is no moat that prevents this attack from ever happening.
If the BTC miners tried to counter by refusing very high fee transactions, then the attack can counter with flooding regular priced transactions or free transactions.
Either way, no user would actually be able to use bitcoin. The layer 2 stuff would never get incorporated back on to the chain, and the attack would likely trigger a massive panic, causing a price crash, as it would demonstrate BTC to be useless.
For those of you who think an entity with state level resources would never do this, look into the market suppression of silver prices and gold prices. BTC is a broken system that is very much vulnerable to attack. Keep this in mind.