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47 sats \ 2 replies \ @02ad8239c2 23h \ on: The Pleb Economist #3: On the political economy of blocksize econ
"On the other hand, if blocksize is too small, individual users will not be able to economically transact on the chain. They will once again be forced to use trusted intermediaries to transact on their behalf. The prevalence of custodial wallets and exchanges highlights this problem."
this part seems off to me - people use custodial services because they perceive them as convenient, not because blocks are 'too small' - it may become a reason in future, but isn't currently.
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30 sats \ 0 replies \ @ek 11h
I think what the quote meant was that custodial services can batch transactions to be cheaper (and maybe other economies of scale fun) which is part of the convenience since you care less about current fee rates if at all
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0 sats \ 0 replies \ @SimpleStacker OP 21h
Yeah, convenience / perceived complexity of self-custody is probably the larger motivating factor.
But there have definitely been times where I didn't want to transact on-chain because the fees were too high.
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