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
