Many of the debates around block size in Bitcoin operate under the false premise that the question can even be properly answered by a central authority. But markets are better at deciding these questions and block sizes and fee costs should be worked out by miners and users, not development committees.
Price-fixing doesn’t work
Dan Held writes in his latest Medium post:
A decentralized economy complements the dispersed nature of information spread throughout society. Each company is an attempt to take the local knowledge that it has and create a good or service that ultimately is the correct capital allocation (aka profit).
This is correct, which makes me think he must not understand the point he’s trying to make, because Held also argues that Bitcoin developers must impose production quotas on block space in order to maintain an ideal block size in Bitcoin and ensure miner profitability and network security.
Price fixing like this breaks Bitcoin for the same reason any form of price-fixing doesn’t work. It distorts the local information economic actors have that would allow them to properly allocate their own capital and energy. This often leads to an overproduction of a particular economic good and an underproduction of another, or, bloat and shortages. Read More...