Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
jbreher
on 07/05/2018, 06:12:42 UTC

Yet we have known since Adam Smith that the hidden hand of the marketplace will ensure that the optimal solution is arrived at by letting prices find their own equilibrium. This has been more formalized in more recent times in that the price and quantity of a good will be set at the point where the demand/price curve and the supply/price curve intersect. Further still, dead losses are incurred any time production quotas are enforced. Given this, why do you assert the utility of a production quota on transaction throughput? Why not trust miners to set the tx throughput supply to maximize profit under the demand and supply curves?

The reason BTC price rises so much is unlike most commodity markets the supply is fixed and not subject to oversupply as much as a normal market that will increase production to match the increased profit available.   

You seem to be conflating the supply of BTC with the supply of space in BTC blocks for transaction inclusion. Two very different goods.