Dr Craig S Wright
@Dr_CSWright
October 19th, 2022

If a miner is not mining a miner is not mining a 40 GB blog every 10 minutes, we are charging too much!

That is a fee market.

If you have supply (ie empty block space) and it is not being met by demand, basic economics 101 means that we are charging too much.


Nodes process transactions & are obliged to include every transaction they can possibly process. The limitation should be the node running out of space. However, every other node will process these transactions & the result will be any node that processes less will get paid less.


That is a free market.

Free markets set price based upon supply and demand.

The maximum level of supply that is currently available is over 4 GB every 10 minutes.

As supply is not being consumed and there is waste... The market is valuing transaction processing lower.


To be a free market price, supply will need to match demand.

For this to occur, the entire block space that is available will need to be full every 10 minutes. At that stage, miners will start selecting transactions based upon value.


Then, those who do not pay the clearing price will find themselves without verification and not being built into a block. The price mechanism requires that supply and demand meet.

Right now, bitcoin is not at a free market price. The nodes are holding the price artificially high


To form a free market clearing price will require that all available block space is always full.

If any block space is available at any time on any block then the system is charging too much and not too little.


Anybody who understands economics will understand that if there is empty supply that is not being taken up, the price is too high and not too low.

While the BSV Blockchain is not 100% full at all times the price should be lowered not increased.


If we do not have 4.5GBand a full member pool at all stages we are not pricing correctly. Nodes will always try and force price up.

Adam Smith discussed how merchants collude. Nodes will also collude. It is our job as consumers to stop them.


The transparency of bitcoin system allows people to tell whether nodes are doing their job properly.

With fees set at the rate they are people are not coming in and using the system, if we don't have 4 GB or more every 10 minutes of traffic the nodes are charging too much.


That is how a free market works.

Nodes do not collude to force consumer prices up in a free market. That is a cartel action. Such actions are illegal and against free-market practice.