Bitcoin Blockspace: Dynamics of System Resource Use

Competition for blockspace is and always will be one of the core tensions that exist between different users of the Bitcoin protocol. At the end of the day there are only two restrictions on how it will be used, the technical and consensus layer of what is actually possible or allowed by the protocol, and the economic layer of what people are willing to pay to make use of blockspace to different ends.

This is a fundamental and inescapable reality of how the network works. It is a purely market driven distributed mechanism for deciding how Bitcoin is used. Concerning anything that is possible to do, the market is the ultimate decider as to whether or not it will be done. The market is…

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