What exactly is wrong with this "bloat?"
Blocks won't go over the size cap, so it's fair to clients.
SD is paying enough in fees for miners to accept, so it's fair to miners.
Speculators get slightly richer from lost coins and increased popularity.
The only people who are worse off are other senders because they now have to pay a market price instead of tips.
Isn't this what we signed up for? Transaction fees go up, subsidy goes down?
Everyone who has accepted the
spirit of Bitcoin wants a new, peer regulated currency independent of central-banks and civil-liberties-crushing government control. The next thing is they want is for Bitcoin to take some market share from the
existing fiat dominated world.
Applications like SD are generating new business
within the Bitcoin domain, business which could never have existed before. This is fine to a degree, but this new, internal, business is not replacing general fiat usage or taking market share from paypal or mastercard, yet it is close to 70% of Bitcoin's transaction flow. This means that only 30% of Bitcoin's processing is replacing existing real-world fiat&payments. Even this might be fine, but Bitcoin has a finite capacity at the moment, the max block size, and a further unknown block size limit which is set by the network block propagation latency and verification time (remember, only 10 mins between blocks).
There is a potential risk, which looks to me a big risk, that SD-like applications will grow to consume nearly 100% of Bitcoin's capacity. At that point the "improve the world" dream will be on life-support. There is also the problem of unspendable outputs bloating the blockchain.
We are asking that SD optimize itself to at least buy some time.