Scarcity >> Scaling. Bitcoin Tech Talk #248
Elon Musk recently stated that on-chain scaling would be what would separate Dogecoin from its competitors, as if it’s a smart engineering choice. On-chain scaling is something that’s been talked about for years and the raison d’être for many altcoins. After all, they reason, Bitcoin only has 1 MB blocks, so a 10MB block should be worth ten times as much, right?
This is the ridiculous reasoning behind many altcoins whose underlying belief is that the value of Bitcoin is limited by the transaction capacity. As the past 10 years have shown, however, that doesn’t seem to be the case. Further, the failure of projects like Bitcoin Cash and Feathercoin, which have far more transaction throughput shows that it’s not just transaction capacity that matters.