The Red Queen interpretation, whereby we must change Bitcoin ASAP for the sake of keeping it the same, is absurd. Moving the tx supply curve with the goal of controlling the range where it intersects that of demand is prima facie centralized market manipulation. As long as tx fees are absurdly underpriced, in terms of their cost and what users are willing to pay, the fee market is completely broken. Bitoin's 'free sample/loss leader' viral marketing campaign phase ended with the emergence of omnipresent 'cosmic background spam.'
ICEBREAKER, I am not attributing all of the below to you. Just using your comment as a springboard for some thinking I have been going through over the past few months as tensions increase on block size.
I have heard this statement "tx fees are underpriced" and "fee market is broken" several times and I still don't get it. Mainly because the way it gets portrayed is that we must raise fees now vs. let things develop naturally otherwise miners can't stay in business. When the block reward halves what do you think happens? My expectation is that miners will still need to pay the bills in fiat so the fiat per BTC ratio will increase. This increase, by it's very nature, increases the fiat "profit" per transaction fee. So, if fiat/BTC increases due to reward changes the fees go up from the perspective of a fiat holder. Heck, I suspect the block reward will be a major factor in driving fiat/BTC ratio until the block reward gets close to the average transaction fee. .
If anything, we should get the blocksize to the largest rationally supportable size and allow nature to take it's course. Fees, from a fiat perspective, will go up even if the miners do nothing to prioritize transactions by fee or increase the bitcoin denominated standard fee. Miners will still make a profit as scarcity drives the fiat/btc ratio and the fee market will continue to develop as a means of preserving scarce resources and preventing spam. It seems to have done an adequate job so far and this may be the best possible outcome with respect to keeping bitcoin globally relevant. One of the biggest drivers of adoption we have at our disposal is the fiat/btc ratio.
There must be something I have been missing in the arguments I see about this. Where does the above thinking not work? Thanks ICEBREAKER for letting me borrow your words.
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. Of course you have to get people to agree to use your fork but that is another thing entirely. Errr, consensus?
