The best way to solve spam *and* Bitcoin's low-usage problem is by decreasing the block size. Then when we find that a lower block size doesn't solve the spam issue and Bitcoin usage is still low, we can decrease the block size further. We continue doing this until Bitcoin blocks contain 0 transactions outside the subsidy. At this final state of 0 transactions/block everyone is happy: → Spam Haters have won the battle against arbitrary data on Bitcoin by disallowing *any* data. → Spam enjoyers have won because there is now a hard cap on how many more JPEGs can be put on-chain, meaning their assets become significantly more scarce (and we know because of Bitcoin podcasters that scarcity == value) Then Bitcoin can finally be used exclusively as a pristine capital asset. UTXOs are no longer created nor destroyed, but that is not a problem because we just statechain the private keys but through trusted custodians (which is the whole point of Bitcoin anyway). Creating new UTXOs is a spam attack vector, we need to only allow destroying of UTXOs. Everyone is happy, everyone's bags go up. If your Paper Bitcoin Company is interested in more insights like these, I'm available for consulting (DMs open)
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