He's saying the fees aren't burned like with mining, so they don't hurt the economy by the amount of the fee: the profit portion of them goes into other investm

He's saying the fees aren't burned like with mining, so they don't hurt the economy by the amount of the fee: the profit portion of them goes into other investments. The fees hinder parts of the economy making some transactions nonviable, but they don't fully translate to "friction" making waste heat so much as something more adiabatic that goes back in. It's largely an extraneous spring in the system, not a damper.