Issue #763: Mempools, the purest pricing indicators in the world

Here's a great piece from Zane Pocock of Knox Custody that explores the idea of Bitcoin mempools and their role as pure pricing indicators and clearing houses for the allocation of transactions within scarce block space. I highly recommend you check it out when you get a chance because it is a framing of mempools that I have not yet considered to date and I think it makes a lot of sense.

I say "fix the money, fix the world" in this rag a lot because money is the most important tool in the world as it is used to price goods and, by doing so, distilling information so that individuals can make good decisions when allocating capital and weighing opportunity costs. When money is controlled by a select few it distorts the pricing of goods, and therefore distorts information. This causes a mass misallocation of capital by individuals and forces them to weigh unnecessary opportunity costs. This has had a very negative effect on society of the course of the last five decades.

Bitcoin brings an undistorted monetary good back to the markets. A good that was born of and exists purely on the free market and is controlled by no one. This will provide better pricing mechanisms to individuals that will result in better information and decision making in the form of efficient capital allocation and clearer opportunity costs. This is exemplified via the mempools that exist throughout the Bitcoin network, which gather pricing information and allow the market to accurately price block space at any given point in time. The natural ebb and flow of the price for block space helps individuals using the Bitcoin make better decisions. These decisions manifest themselves in many different ways. Whether it be sending transactions with lower fees because one is willing to wait to get their transaction confirmed, batching transactions, or deciding to use a second layer to move satoshis; the pricing mechanism provided by mempools forces bitcoiners to make smarter, more efficient decisions. This will make the Bitcoin network as a whole more efficient over time.

Few recognize this now. In time it will be obvious.

Go peep Zane's piece, as he explains it much more eloquently than I can.

Final thought...

I like taking calls in the car. Becoming a car Bluetooth maxi.

Enjoy your weekend, freaks.