Shrinking Bitcoin’s Block Size Might Save It: A Fix for the Long-Term Security Budget

Show Notes

What if the answer to Bitcoin’s long-term security problem isn’t higher fees or more users but smaller blocks? In this discussion from PBJ, the crew explores decreasing Bitcoin’s block size as a potential fix for the future security budget. The conversation covers block-size economics, miner incentives, fee markets, and why Bitcoin’s value may eventually depend on network activity, not just price. Timestamps: 0:00 — Bitcoin as a settlement layer 00:57 — The case for decreasing block size - Luke Dashjr’s proposal 09:10 — The security-budget paradox and misaligned incentives 17:03 — Future fixes: dynamic block size and economic modeling 🎧 From the PBJ podcast recorded at 📍Presidio Bitcoin 🔗 Full episode: https://youtu.be/ajsWQStK1JU 🌐 Learn more: https://www.presidiobitcoin.org/