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>Bitcoin's narrative has had to morph from "digital currency" to "digital gold". This narrative was an intentional morphing by various actors within the space

by dylkil 6y ago

>Bitcoin's narrative has had to morph from "digital currency" to "digital gold". This narrative was an intentional morphing by various actors within the space (Blockstream) who believed raising the blocksize to allow higher throughput would cause 'centralisation'. Instead they want people to use layer 2 solutions such as blockstreams own federated product Liquid.

tromp 6y ago
As explained by blockstream co-founder Greg Maxwell in [1], the blocksize is constrained in order to ensure a steady backlog of fee paying transactions, that allow bitcoin to remain secure in the long term when block subsidy becomes insignificant. [1] https://bitcointalk.org/index.php?topic=5306354.0 https://bitcointalk.org/index.php?topic=5306354.0
- dylkil 6y ago
  >that allow bitcoin to remain secure in the long term when block subsidy becomes insignificant. this line of reasoning is silly. To match the current block subsidy with the current block size limit when miner subsidy runs out the average transaction fee will need to be >$127. $45mil daily revenue / 350,000 txs per day OR, you could increase the block size limit to 10mb, allowing 3.5mil txs per day, or 100mb allowing 35mil txs per day. Then the average fee paid per tx is significant lower. The reason this was argued against by blockstream was because a bigger blocksize means more storage is needed by the miner and more txs means better hardware and bandwidth to process them, effectively pricing out normal people from running full nodes. Essentially, the ability for normal people to send a transaction cheaply is being sacrificed so that normal people can setup a full node. Counter intuitive imo.
  - FabHK 6y ago
    > when miner subsidy runs out the average transaction fee will need to be >$127. Stein's Law: "If something cannot go on forever, it will stop." https://en.wikipedia.org/wiki/Herbert_Stein#Stein's_Law https://en.wikipedia.org/wiki/Herbert_Stein#Stein's_Law
  - suikadayo 6y ago
    > normal people can setup a full node This argument was really silly too because people can afford higher capacity drives, and better internet connection according to Moore's Law
suikadayo 6y ago
I don't understand why you're being downvoted. Anybody who was here before 2017 know what happened.

by dylkil 6y ago

tromp 6y ago

As explained by blockstream co-founder Greg Maxwell in [1], the blocksize is constrained in order to ensure a steady backlog of fee paying transactions, that allow bitcoin to remain secure in the long term when block subsidy becomes insignificant. [1] https://bitcointalk.org/index.php?topic=5306354.0 https://bitcointalk.org/index.php?topic=5306354.0

dylkil 6y ago
>that allow bitcoin to remain secure in the long term when block subsidy becomes insignificant. this line of reasoning is silly. To match the current block subsidy with the current block size limit when miner subsidy runs out the average transaction fee will need to be >$127. $45mil daily revenue / 350,000 txs per day OR, you could increase the block size limit to 10mb, allowing 3.5mil txs per day, or 100mb allowing 35mil txs per day. Then the average fee paid per tx is significant lower. The reason this was argued against by blockstream was because a bigger blocksize means more storage is needed by the miner and more txs means better hardware and bandwidth to process them, effectively pricing out normal people from running full nodes. Essentially, the ability for normal people to send a transaction cheaply is being sacrificed so that normal people can setup a full node. Counter intuitive imo.
- FabHK 6y ago
  > when miner subsidy runs out the average transaction fee will need to be >$127. Stein's Law: "If something cannot go on forever, it will stop." https://en.wikipedia.org/wiki/Herbert_Stein#Stein's_Law https://en.wikipedia.org/wiki/Herbert_Stein#Stein's_Law
- suikadayo 6y ago
  > normal people can setup a full node This argument was really silly too because people can afford higher capacity drives, and better internet connection according to Moore's Law

suikadayo 6y ago

I don't understand why you're being downvoted. Anybody who was here before 2017 know what happened.