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/btcpolicyorgConnect with William Luther: https://x.com/WilliamJLutherConnect with Josh Hendrickson: https://x.com/RebelEconProfConnect with Renee Sorchik: https://x.com/Renee_C_SChapters00:00 – Intro & Guest Bios01:00 – Block size, congestion & crime deterrence04:30 – Why criminals must move fast07:00 – Fees, laundering risks & public blockchains09:00 – Lessons from traditional finance (Brazil example)12:00 – Breaches are rare, but significant15:00 – Blocksize Wars & small blocks as security20:30 – Policymakers, trade-offs & decentralization25:00 – SegWit as a natural experiment30:00 – Congestion, confidence & Bitcoin price38:00 – Lightning Network & scaling trade-offs43:00 – Why academics should study Bitcoin52:00 – Closing thoughts & future research