Economists Discuss Block Fullness, Security, and the Price of Bitcoin

<p>In this conversation, Renee Sorchik discusses with Dr. Joshua Hendrickson and Dr. William Luther the implications of their research on Bitcoin, focusing on the relationship between block size, security, and the price of Bitcoin. They explore how block congestion can act as a deterrent to criminal activities, the empirical analysis of breaches and fraud, and the historical context of the block size debate. The discussion also touches on policy considerations for Bitcoin&#39;s future and the potential impact of Layer Two solutions on transaction dynamics.</p><p><br></p><p>Connect with the Bitcoin Policy Institute: https://x.com/btcpolicyorg</p><p>Connect with William Luther: https://x.com/WilliamJLuther</p><p>Connect with Josh Hendrickson: https://x.com/RebelEconProf</p><p>Connect with Renee Sorchik: https://x.com/Renee_C_S</p><p><br></p><p>Chapters</p><p>00:00 – Intro &amp; Guest Bios</p><p>01:00 – Block size, congestion &amp; crime deterrence</p><p>04:30 – Why criminals must move fast</p><p>07:00 – Fees, laundering risks &amp; public blockchains</p><p>09:00 – Lessons from traditional finance (Brazil example)</p><p>12:00 – Breaches are rare, but significant</p><p>15:00 – Blocksize Wars &amp; small blocks as security</p><p>20:30 – Policymakers, trade-offs &amp; decentralization</p><p>25:00 – SegWit as a natural experiment</p><p>30:00 – Congestion, confidence &amp; Bitcoin price</p><p>38:00 – Lightning Network &amp; scaling trade-offs</p><p>43:00 – Why academics should study Bitcoin</p><p>52:00 – Closing thoughts &amp; future research</p>