It states that a high direct tax is more irritating to people than a hidden tax of the same amount. The analogy is made that a transaction tax is like an on-chain fee, while an inflation tax is like the block reward in Bitcoin. It is mentioned that miners can only collect payment for network security in the amount of these taxes and no more.

The email then presents a thought experiment of a system that maintains a constant level of difficulty and adjusts the block reward accordingly. It suggests that the level of network security is limited due to Earth's finite resources, making it hard to imagine a situation where Bitcoin is responsible for a large percentage of global energy consumption. Therefore, there is a natural level of network security that corresponds to a level of inflation.

The sender adds a comment from the internet that compares this concept to central banks setting interest rates and mentions that the lack of inflation aligns with Austrian economics but is a new concept when tied to the security of a monetary system. The email includes a link to a relevant article discussing these ideas.

It concludes by mentioning growing awareness of the lack of a free market between active and passive participants in Bitcoin and the acceptance of proposals to address this issue. The sender emphasizes that the free market is more important than the finite supply of Bitcoin.