Author: Jorge Timón 2015-07-24 09:24:01
Published on: 2015-07-24T09:24:01+00:00
In an email conversation between Tom Harding and Jorge Timón, the topic of sustaining the Bitcoin system by fees was discussed. Timón suggested that the system would eventually need to rely on fees for sustainability. However, Harding disagreed and stated that fee revenue can increase without increasing BTC fee rates through increased exchange rate or increased number of fee-paying transactions. He argued that neither of these avenues benefit from increased "fee pressure" caused by scarcity of block space. Timón questioned why users should increase the number of fee-paying transactions if their free transactions are reliably mined relatively fast. He also asked why it is not good if users pay fees due to limited space in the block and whether this is a good thing or a "catastrophe" that can be avoided by rising the block size. The issue of having a limit on the block size and its potential negative impact on short-term adoption was also brought up. Regarding the suggestion of increasing the exchange rate, Harding pointed out that it is not something that can be easily controlled.
Updated on: 2023-06-10T03:16:38.845122+00:00