Re: Bitcoin XT - Officially #REKT (also goes for BIP101 fraud)
Your idealized considerations of spherical blockchains are suitable for academic and altcoin architecture consideration, but serve no positive purpose in the practical matter of Bitcoin's max_block debate...
ok soooo....
You're using a tautological argument to claim that Peter's fee market theory is wrong because the dead weight is really being used to create a fee market
...and then topping that off with an unabashed appeal to authority.
Good one.
Many people from the thread linked below (myself included) seem to think that it is clear that a block size limit cannot be used to increase the fees; they think that either the protocol would fork or that the demand would spill into competing coins, etc.
https://bitco.in/forum/threads/gold-collapsing-bitcoin-up.16/page-40#post-1276
We should be able to test this empirically: if the theory is true, then, for example, we should never have a sustained period in the future where the total fees collected by miners is significantly greater than the aggregate losses due to orphaning.