Bitcoin Mining, Block Space As A Commodity And Signalling BIP 110 - Bob Burnett - #610

Strong interview with very interesting points.The fact that financial service providers must always chase higher returns just to keep capital, otherwise it moves to competitors, makes you question whether this system has any real winners. In the end, it feels like there are only two options: no money at all, or money based on debt and controlled through debt. Bitcoin finally offers a way out of this. Thank you, Peter. It’s clear that you truly want to make things better and that you are actively working toward change.

Strong interview with very interesting points.The fact that financial service providers must always chase higher returns just to keep capital, otherwise it moves to competitors, makes you question whether this system has any real winners. In the end, it feels like there are only two options: no money at all, or money based on debt and controlled through debt. Bitcoin finally offers a way out of this. Thank you, Peter. It’s clear that you truly want to make things better and that you are actively working toward change.

Excellent episode. Very informative and well spent two hours. Thank you.

After watching that episode, I couldn’t stop thinking about it all day. Our entire perspective on the economy is built on a flawed premise. Our unit of measurement isn’t constant. Bitcoin will change this forever. Thank you, it was truly fascinating!

What a great conversation. Thank you both! 🫡

Okay, this is a very interesting point. We still do not fully know how Bitcoin ultimately behaves in upgrades involving consensus, because these dynamics only become fully visible during real conflict situations. However, the Blocksize Wars already gave us important insight into how Bitcoin behaves under pressure. It is often said that changing Bitcoin consensus rules is extremely difficult. In theory, that is true. In practice, however, the dynamics could look very different. If users attempt to activate new rules through a User Activated Soft Fork (UASF) and enough nodes begin signaling support for those rules, miners come under pressure. Miners have a strong incentive to avoid producing blocks that could later be rejected by the relevant part of the network. Because of this miners may tend to adopt the new rules, or at least produce blocks that remain compatible with the change, even when the initial active support is relatively small. That would mean Bitcoin may, in practice, be more changeable than we assumed. The key question would then no longer be how changes are activated, but how they are prevented. Because stopping a UASF would not simply happen through passive inaction. It would require an active counterfork with opposing rules that is consciously supported by nodes, users, and miners. And this is where it becomes especially interesting: Not all existing nodes determine the outcome, only the active participants do. Nodes and miners must proactively support, or oppose a proposed direction. Those who do not participate are effectively treated as neutral. Many people do not want to engage with every technical debate. Some do not have the time, others may not fully understand the arguments, or simply consider both outcomes acceptable. In this model, passive participants are not automatically interpreted as opposition. As a result, changes would primarily be decided by those willing to actively take responsibility and participate. At the same ti…

Thanks for the interview. I largely agree with Jimmy on almost all points, which is precisely why his final conclusion is hard to reconcile. He clearly understands the reasons for pursuing a fork and even acknowledges the upside of what is often framed as the strongest criticism of the BIP: that it makes future changes to Bitcoin harder. A stricter consensus reduces the risk of frequent or careless modifications and helps protect Bitcoin’s long-term stability. The only serious counterargument he raises is the risk of a network split. But Bitcoin is a long-term project, not a political compromise. If we believe something strengthens Bitcoin over the long run, short-term risks should not automatically prevent action. Doing nothing is also a choice. Clear signaling matters: the more people openly signal their position instead of waiting on the sidelines, the clearer the real consensus becomes and the stronger Bitcoin will be in the future.

Love it!

Great interview. Samson Mow has gained a lot of integrity in my eyes. He is one of the few developers who fairly and accurately weighs the arguments of those opposing Core.

Spam und NFTs gehören aus meiner Sicht nicht auf Bitcoin und waren ursprünglich auch nie dafür gedacht. Meiner Meinung nach wurde der Konsensus bewusst offen gehalten, während die Policy-Regeln der Nodes flexibler sein sollten, damit man auf neue Formen von Missbrauch reagieren kann, ohne ständig eine Konsensus Änderung zu brauchen. Die Policy-Regeln definieren, welche Transaktionen Nodes standardmässig weiterleiten, oder in den Mempool aufnehmen. Genau diese Regeln sollten eigentlich als Schutzmechanismus gegen Spam dienen und bei Bedarf angepasst werden können. Früher hat dieses Modell deutlich besser funktioniert, weil Mining und die Erstellung von Block-Templates wesentlich dezentraler waren. Da niemand wusste, welche Node / Miner den nächsten Block finden würde, mussten Transaktionen über das gesamte Netzwerk propagiert werden. Dadurch hatten die Policy-Regeln der Nodes realen Einfluss darauf, welche Transaktionen sich überhaupt effizient im Netzwerk verbreiten konnten. Heute ist die Situation anders: Die Erstellung von Block-Templates ist stark zentralisiert, wodurch sich die Policy-Regeln vieler Nodes teilweise einfach umgehen lassen. Dazu kommt, dass Bitcoin Core Policy-Regeln zusätzlich gelockert hat, was das Problem weiter verstärkt hat. Das Resultat sehen wir jetzt: Ein erheblicher Teil des Blockspaces wird inzwischen für nicht-monetäre Daten genutzt (fast 40% in den letzten 6Monaten). Wenn nichts dagegen unternommen wird, riskieren wir dauerhaft volle Blöcke, höhere Anforderungen an Nodes und steigende Kosten für das betreiben einer Node.

Great episode. Thank you!

Thanks for the podcast. I agree with almost everything. One more specific point I would add: every additional development on Bitcoin increases complexity and with it the risk of errors. Each new layer makes us more dependent on developers, on how they interpret the code, and how they assess trade-offs. The more complex the system becomes, the harder it is for the network as a whole to evaluate changes and make sound decisions. At the same time, the attack surface grows, both technically and socially. Greater dependency also increases the risk of capture or undue influence. In that sense, a simple and clearly defined protocol is not stagnation. It is protection.

„This year, block propagation has slowed down, because some transactions are missing from node mempools.“ That’s a disadvantage for miners who include transactions containing non-monetary data. If miners don’t include them, there’s no delay. So does this finally mean filters aren’t useless after all?

Do you live in your dream house now? Is your famous closet in your dream house?

My thoughts about that: In the past, money printing mainly made a small group of people wealthy. They accumulated so much wealth through assets like stocks and real estate that they didn’t need to sell much of it. Most of their money stayed invested, and they continued to benefit from rising asset values without significantly increasing their spending. Today, the broader access to financial markets, largely enabled by the internet, means that many more people can participate in wealth creation. Unlike before, those who now gain from rising asset prices often still have unmet needs. Instead of just holding onto their wealth, they are more likely to cash out and spend, especially on everyday goods. This shift leads to higher overall consumption and contributes to rising inflation. It suggests that the true inflationary impact of money printing only emerges when the benefits reach a wider population. And that’s the reason why it’s only now becoming so obvious..