if the block size limit were raised to 1MB, then this free transaction capaticy will likely become 128KB, so that more transactions become free
The capacity will become whatever the miners are willing to set it at, no more. If they want more fees nobody is forcing them to accept free transactions. 
Topic: Oh god, I see a chance for lifting the 1M block size limit !!! - page 2. (Read 3674 times)
More space=more transactions=more fees. Yes, fees will be lower per transaction, but this will be countered by the increased number of transactions.
I guess you mean "More pay-to-use space = more fees". People always can select free transaction first before they pay fees, currently the free transaction limit is set at 27KB, if the block size limit were raised to 1MB, then this free transaction capaticy will likely become 128KB, so that more transactions become free
But it's directly messing with the Velocity controls. I didn't sign-up for "Inflatacoin".
The magic of Bitcoin is that higher velocity leads to deflation. As soon as it doesn't, velocity will fall. It is self-regulating. "Velocity controls" are unnecessary. Progressive taxes are unnecessary. Tobin taxes are unnecessary. "Windfall profits" taxes are unnecessary. These are all relics of the fiat-money paradigm that is defective by design.
The block size limit has no bearing on the Bitcoin economy. It is a technical failsafe designed to protect the Bitcoin network. Once it is no longer needed, it will be discarded.
Anyone reading my posts will know that I have been all for raising the 1Mb limit at the right time, and in the right way. However, after today's events, that time is further away than previously imagined. A lot of reflection and thoughtful planning needs to go into any future change of this nature. More than we might have guessed 24 hours ago.
The first lesson of today is how to get people to accept the necessity of an upgrade path. Then how to get people to use it in a reasonable timeframe. Bitcoin can't reach its full potential being backwards compatible with every ancient version previously released. This is a real challenge.
The first lesson of today is how to get people to accept the necessity of an upgrade path. Then how to get people to use it in a reasonable timeframe. Bitcoin can't reach its full potential being backwards compatible with every ancient version previously released. This is a real challenge.
I too am all in favor of lifting the limit, but these events have nothing to do with it. This event was unplanned.
If you plan it it's really not such a challenge. Starting now and with every future update, simply implement code that says "starting precisely at this date [six months from now] the limit will be raised". If you're running a full node that's older than six months and haven't heard the news for six months, well... You'll just be part of the tiny minority who's out of the loop. Someone may be holding on to obsolete coins and not know they're busted, but that's just what happens if you're out of the loop for so long.
The challenge is not getting everyone on board at once, it's getting everyone's consensus.
Related:
When a majority of miners realise that lifting the 1MB block capacity will hit their pocket, they'll never let it happen unless the adjustment is done in such a way as to give them more control (e.g.: direct voting power) over the scarcity. Note: I'm not talking about the database fiasco, but allowing actual "block height" to be bigger than 1MB.
tl;dr from earlier thread I started:
aka: supply and demand.
More space=more transactions=more fees. Yes, fees will be lower per transaction, but this will be countered by the increased number of transactions. When a majority of miners realise that lifting the 1MB block capacity will hit their pocket, they'll never let it happen unless the adjustment is done in such a way as to give them more control (e.g.: direct voting power) over the scarcity. Note: I'm not talking about the database fiasco, but allowing actual "block height" to be bigger than 1MB.
tl;dr from earlier thread I started:
- Every 1kB of new block space = "my precious"
- so-called 'fees' are really bids for that precious resource
- more block space = less precious.
- therefore, maybe miners should have a voice.
aka: supply and demand.
There was not ever any scenario in which the limit would not eventually be lifted.
Mining was always going to be a temporary way of earning Bitcoins, from what I understand, I think people have underestimated quite badly how popular Bitcoin is getting, either way, the currency should never be dictated by special interest groups, that's how Bitcoin ended up being made in the first place to attack paper money. If I see Bitcoin being messed with in such a way by greedy people I'll probably switch over to Litecoin.
start to use testnet coins as silver and prodnet coins as gold. start now. forget altchains!
EDIT: who want to buy testnet coins for testing their applications. pm me!
EDIT: who want to buy testnet coins for testing their applications. pm me!
Before I thought that's the most troublesome topic in bitcoin, but now this bug in BDB opened a window to lift that limit, Gavin you are so lucky! 
Would you propose to your fiance while standing in an elevator? Because this thread is showing similar impeccable skills at timing.
Anyone reading my posts will know that I have been all for raising the 1Mb limit at the right time, and in the right way. However, after today's events, that time is further away than previously imagined. A lot of reflection and thoughtful planning needs to go into any future change of this nature. More than we might have guessed 24 hours ago.
The first lesson of today is how to get people to accept the necessity of an upgrade path. Then how to get people to use it in a reasonable timeframe. Bitcoin can't reach its full potential being backwards compatible with every ancient version previously released. This is a real challenge.
Before I thought that's the most troublesome topic in bitcoin, but now this bug in BDB opened a window to lift that limit, Gavin you are so lucky!
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