A fee market exists with no block cap. Peter R explained why at the scalability conference.
Peter R's theory does not apply in practice so it is irrelevant to discuss it.
Moreover he readily admits it does not hold absent of block subsidy.
just because it doesn't jive with your cock eyed theory that low TPS with high fees is good for bitcoin. doesn't mean it Peter R's theory does not apply in practice.
hes sure what it would so with no block subsidy, my guess is the theory hodls true, because miners still stand to potentially lose out on a lot of fees should there block with (even with 0 subsidy) be orphaned, but the model to calculate SupplyVsDemand needs to be changed a bit i guess.
[/quote]
Couldn't be bothered to read you boring comment but let me state again: dynamics currently observed in the network clearly demonstrate that Peter R's assumptions are wrong and therefore his theory does not apply.