The trick is not to panic about "how the market could possibly handle it without central planning." No one is smart enough to figure out all the little rules and stipulations for each economic relationship, let alone do so in advance, let alone get consensus on such rules. Just remove the cap and let the market work. Babying the market with paternalism in the form of artificial scarcity just leaves the space open for competitors to stick their oars in.
Well said.
You (rocks), justusranvier, the guy you quoted (not going to try to type zangle....), and a few others are, in my opinion, some of the smarter guys on this forum. Thanks for sticking around. Sorry for not thanking you sooner. Please don't leave us. Just because mindless trolls and zombies are grunting and bumping into each other does not mean it is time to leave. I am not a conspiracy person but have wondered if some of the trolls are not hired shills... There IS a lot at stake here.
Free markets work. In this situation where we have few to none of the categorized market weaknesses (negative externalities, pop culture, public goods) freeing the market while minding incentives in the structure of the system is best. Nodes, at this point, seem to be victim to the public good weakness but everything else is flawless. I run a full node as well as some miners (at a loss and since 2010) because I am altruistic in spite of my admiration for "Atlas Shrugged." We just can't expect everyone else to get gushy over my love of humanity and the beauty of this bloodless revolution so incentives need to be in place for the brightest future. Invisible hand (Adam Smith) only works when it is invisible.
The rationale for a Max Block Size has almost nothing to do with transaction fees, or free market activity.
It has a lot more to do with security and reliability.
The free market doesn't provide this.