Author: Jorge Timón 2015-07-23 12:17:14
Published on: 2015-07-23T12:17:14+00:00
The discussion on a fee market has been ongoing for a while, and some are wondering why it is being implemented now when Bitcoin is still young. The fact is that fees have been low for six years, and there has been no need for a fee market because supply (block space) has always been higher than demand (transactions). However, with an increase in demand, it was only reasonable to expect fees to rise. Users have had the expectation of sending fast in-chain bitcoin transactions for free, like breathing air, which needs to be changed as soon as possible. Some smart people prefer that Bitcoin continues to grow, rather than making the system more expensive to use right now. But if not now, then when? There is no clear answer, and the criteria for consensus block size should be based purely on technological capacity and centralization concerns. However, the "not now side" seems to have no centralization concerns at all and may be hiding their true position, which is "not ever hit the blocksize limit." The 'not ever side' could have already won this battle for six years, and they will simply advance the front and start another battle when they win this one. It's important to note that business plans that rely on free in-chain transactions may fail, and business plans that are planning for a future with fees and without subsidies may get the advantage they deserve. Choosing "let a fee market develop" today is picking economic sides, picking winners & losers in the market.
Updated on: 2023-06-10T03:17:43.469941+00:00