[Bitcoin-development] Block Size Increase
tomh at thinlink.com
Fri May 8 04:46:48 UTC 2015
On 5/7/2015 6:40 AM, Jorge Timón wrote:
>> Known: There's a major problem looming for miners at the next block reward
>> halving. Many are already in a bad place and without meaningful fees then
>> sans a 2x increase in the USD:BTC ratio then many will simply have to leave
>> the network, increasing centralisation risks. There seems to be a fairly
>> pervasive assumption that the 300-ish MW of power that they currently use is
>> going to pay for itself (ignoring capital and other operating costs).
> I take this as an argument for increasing fee competition and thus,
> against increasing the block size.
That doesn't follow. Supposing average fees per transaction decrease
with block size, total fees / block reach an optimum somewhere. While
the optimum might be at infinity, it's certainly not at zero, and it's
not at all obvious that the optimum is at a block size lower than 1MB.
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