I have read and thought about what you are saying and
first of all, thank you for reading and peer reviewing
Peter's paper.
Let's discuss.
I would like to believe that Peter is correct but
I'm open minded enough to consider that he may not be.
I want to understand more clearly what you are saying and why.
Peter says that a non-zero supply curve exists because increasing block size increases cost to miners due to higher orphan rate. I have also heard a variation of this argument with increasing block size being constrained by hardware resources, internet bandwidth etc.
Theoretically these arguments are correct, practically they are not.
The effect of block size on these costs is almost negligible
I'm not sure why you say that. Can you support that point?
Would would they be negligible?
To me, it seems anything but negligible, and seems like common sense.
The bigger block, the longer the time is required to process
it, and the greater the the risk of orphaning.
What am I missing here?