In the previous installments of this series, we explored how the HODL culture has undermined Bitcoin’s privacy and squandered its potential as a global medium of exchange.
Now, in Part 3, we take a closer look at the long-term consequences of discouraging real economic activity on the blockchain. When Bitcoin’s network is locked in a state of dormancy, with small blocks designed to limit usage, it doesn’t just slow growth—it cultivates a toxic ecosystem driven by rent-seeking behavior and gatekeeping. With few opportunities to create new value, the network’s dominant players become more focused on controlling the narrative, extracting fees, and consolidating power, all while strangling the very innovation that Bitcoin was meant to unleash.
Rent-seekers, gatekeepers and aristocrats: The new blockchain class system
The decision to artificially limit Bitcoin’s block size is not just a technical choice but an economic and cultural decision. By capping capacity, the network has deliberately suppressed opportunities for value creation, forcing stakeholders into a zero-sum game. …