In this conversation, Renee Sorchik discusses with Dr. Joshua Hendrickson and Dr. William Luther the implications of their research on Bitcoin, focusing on the relationship between block size, security, and the price of Bitcoin. They explore how block congestion can act as a deterrent to criminal activities, the empirical analysis of breaches and fraud, and the historical context of the block size debate. The discussion also touches on policy considerations for Bitcoin's future and the potential impact of Layer Two solutions on transaction dynamics.

Connect with the Bitcoin Policy Institute: https://x.com/btcpolicyorg

Connect with William Luther: https://x.com/WilliamJLuther

Connect with Josh Hendrickson: https://x.com/RebelEconProf

Connect with Renee Sorchik: https://x.com/Renee_C_S

Chapters

00:00 – Intro & Guest Bios

01:00 – Block size, congestion & crime deterrence

04:30 – Why criminals must move fast

07:00 – Fees, laundering risks & public blockchains

09:00 – Lessons from traditional finance (Brazil example)

12:00 – Breaches are rare, but significant

15:00 – Blocksize Wars & small blocks as security

20:30 – Policymakers, trade-offs & decentralization

25:00 – SegWit as a natural experiment

30:00 – Congestion, confidence & Bitcoin price

38:00 – Lightning Network & scaling trade-offs

43:00 – Why academics should study Bitcoin

52:00 – Closing thoughts & future research