Is it time to increase the blocksize cap?

The discussion highlights the technical and economic dynamics of operating Bitcoin channels, emphasizing the system's capacity and cost-efficiency in channel management. It is pointed out that opening a batch of 50 channels consumes approximately 2,000 virtual bytes (vbytes), which, against the backdrop of a day’s total capacity of 144,000 vbytes, suggests the potential to open up to 3 million channels daily or around 1 billion channels annually. This scalability is particularly beneficial for nodes that are not in a hurry to establish their channels, as they might benefit from significantly lower costs due to subsidies from larger entities or those with higher time preferences.

The email further touches on the strategic aspect of cost allocation between opening and closing channels, suggesting that higher costs associated with closing channels are intentionally designed to create optimal incentives within the network. This design choice underscores a broader perspective on how the network manages operational efficiency and incentive alignment.

Lastly, the correspondence delves into the philosophical and economic implications of Bitcoin as a financial instrument. It argues that sound money should be considered a fundamental human right, positioning Bitcoin as not just a financial tool but also a means to empower individuals financially. The argument suggests that Bitcoin's value proposition extends beyond serving those who already have money, by offering a permissionless system that can help people earn money. This point emphasizes Bitcoin's role in providing financial inclusion and its potential impact on economic empowerment.