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What Is the Economic Consequence of Limited Block Space?

Limited block space creates a competitive fee market, leading to high transaction costs and driving the need for scaling solutions.
Greeks.Live18.11.25

What Is the Economic Consequence of Limited Block Space?

Limited block space creates a competitive market for inclusion in a block. When demand is high, users must bid higher transaction fees to secure a spot, leading to high transaction costs.

This economic pressure is a key driver for the development and adoption of scaling solutions like Layer 2 networks.

What Is the Maximum Capacity of a Bitcoin Block and How Does It Relate to Mempool Congestion?
How Does a Layer-Two Scaling Solution Impact the Transaction Fee Revenue of Layer-One Miners?
How Does Network Congestion Influence the Average Transaction Fee?
How Does the Block Size Limit Relate to Network Congestion?

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