All users of Bitcoin benefit from a secure network and a tragedy of the commons type problem could occur, in the sense that Why should I pay a transaction fee for my transaction, when others could pay the higher fee to incentivise miners? This problem clearly occurs for the second "reason" and not the first.
From the miners' point of view, they want to profit from mining, so they won't include txs without enough fee, and the fees makes the network safer, so the reasons for transaction fee are actually coinside of each other.
There is a negative incentive in mining too big blocks, as they propagate longer thus giving a higher chance of getting orphaned. You can try to lift the block size limit in the protocol, but even if the miners had allowed you to do it, they would still be limiting this very size, because of personal incentives - and that's all a developer needs to know about blocksize economics.
That's because the system award makes up most of their incomings, the situation will be different when the tx fee go dominant. So it makes sense to enlarge the block size before that happens.
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BoardEconomics
Re: why do people agree to pay taxes?
by
coindate
on 17/10/2014, 06:26:21 UTC
What you described happennd again and again in history