Block space is scare because energy consumption? Right?
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WE INTENTIONALLY LIMIT BLOCK SPACE AT THE PROTOCOL LEVEL SO RUNNING NODES AND MINING BLOCKS IS MORE DISTRIBUTED.
Small blocks mean that there is greater chance for a more decentralized network. Large blocks require processing and bandwidth out of the reach of people running commodity hardware (laptops, raspberry pi's, home computers). The less accessible bitcoin becomes to normal hardware and bandwidth, the more fuckery and collusion that can occur between large, powerful miners, and MINERS ARE OUR BITCHES AND ALWAYS SHOULD BE