Author: Michael Naber 2015-08-11 21:35:52
Published on: 2015-08-11T21:35:52+00:00
Bitcoin's trustlessness and limited supply make it better money than current currency, even if it is slightly more expensive to transact. However, the best money will ultimately win, and if Bitcoin does not increase its capacity, it will not remain the best option. Michael Naber argues that one of the key characteristics of Bitcoin's success is its inexpensive transaction cost, and if this is no longer true, Bitcoin will be replaced by a better, less expensive option. Pieter Wuille states that the question is not what technology can deliver, but what price individuals are willing to pay for it. He believes that a small constant factor increase will come with higher centralization pressure, and consensus rules are what keep the system together. He advocates for uncontroversial consensus changes to be merged, as the risk from disagreement is likely larger than the effect of a small block size increase. In conclusion, the importance of Bitcoin's block size issue cannot be overstated, as it is a matter of compete or die for Bitcoin.
Updated on: 2023-06-10T18:42:05.593442+00:00