Author: Michael Jensen 2015-05-18 02:29:57
Published on: 2015-05-18T02:29:57+00:00
The author believes that an elevated level of hashing is crucial to maintain decentralization and autonomy in a Bitcoin network. They argue that the current system of incentivizing through inflation must be replaced with a simpler option of minimum fees for transactions. Artificially limiting supply to create a price for transactions is deemed unnecessary. Instead, the author suggests that the development community should let network users express their preferences for security and willingness to pay for it. They also mention that Bitcoin has strong network effects, making it unrealistic for mandatory fees to drive people away from Bitcoin when compared to dubious knock-offs or fiat currency, which have hidden and malignant costs. The argument about limiting block size versus setting minimum fees is considered confused as both mechanisms ideally achieve the same outcome of a market price for transactions that funds hashing. The development community must not play the role of the centralized economic planner in setting prices for network services, and they should look at more dynamic ways to allow network users to express their preferences.
Updated on: 2023-06-09T20:42:43.442868+00:00