Will Full Blocks Destroy Bitcoin? Saylor Argues with Digital Scarcity
Michael Saylor, the chairman of MicroStrategy Inc., recently shared his opinion about the possibility of full blocks destroying the Bitcoin network, which was a question asked by a crypto enthusiast.
Saylor argued that Bitcoin (BTC) ensures digital scarcity by holding asset supply and transaction bandwidth constant over time to create upward pressure on the BTC price. The Microstrategy chairman added this action also breads a healthy free market for the transaction fees necessary to provide durable network security.
Ultimately, Saylor’s tweet reinforces that the Bitcoin network cannot falter due to peaked network activities; instead, the blockchain can automatically manage itself by its design.
#Bitcoin ensures Digital Scarcity by holding asset supply and transaction bandwidth constant over time, thereby creating upward pressure on the $BTC price and a healthy free market for the transaction fees necessary to provide durable network security. https://t.co/jAHwACG2ke pic.twitter.com/WCK9Xbbd3Z
— Michael Saylor⚡️ (@saylor) February 24, 2023
Notably, the question ‘will full blocks destroy Bitcoin’ refers to the scalability issue of the Bitcoin network, where transactions are grouped into blocks, and these blocks have a limited size — currently 1 MB.
Furthermore, as more and more users transact on the network, the number of transactions waiting to be processed can exceed the block size limit, leading to congestion and delays in confirmation times.
In the YouTube link, the channel argued that full blocks — blocks that have reached their maximum size — could cause irreparable harm to the Bitcoin network, as users may be discouraged from using them due to slow and expensive transactions.
Some other people believe that full blocks are a natural part of the network’s evolution and can be addressed through various solutions, such as increasing the block size limit or implementing off-chain scaling solutions like the Lightning Network.
