“regardless if people like it or not, the matter of the fact is that taproot did make it just easy enough to productize the blobspace in bitcoin with a single input such that people are going to start doing it to a material extent.

the 1 sat/vB reign is over, "fun" is coming back to bitcoin.

the historically low demand for bitcoin block space as a result of BTC no longer being the primary way to transfer value between exchanges will prove to be a historical anomaly as we see its demand replaced by people building meta-protocols ontop.

ordinals and inscriptions is one such use case, sovereign rollups is another. but the buck doesn't stop there.

there's an entire EVM and zk landscape that would be more than happy to act as a buyer of last resort on bitcoin if bitcoin's blobspace is both 1) more reliable and 2) cheaper than ethereum's. the market for both these blockspaces will harmonize.

this also means that MEV is coming to bitcoin in a serious way.

maybe this fucks up the chain, maybe it doesn't. if it does, it's not any particular person's fault.

on the negative side, it means that the bitcoin ecosystem may have to adapt MEV mitigation strategies, mining pools in particular. hashrate quickly centralizes around the most MEV-savvy pool if nothing is done since they offer higher rewards per hash in an industry that lives and dies on the margin.

on the positive side, it may mean that we can put "bitcoin is going to require inflation to survive after the block subsidies are gone" behind us, which many loud critics argue is the largest problem for bitcoin.

also, if MEV is already becoming a problem via meta-protocols, then there will no longer be game theoretical arguments to avoid BIP300/301, drivechains, actual zkrollup softforks and other things aside from their own idiosyncratic and implementation-specific risks. there will likely be less resistance in supporting those softforks, as they won't introduce MEV, the MEV will already be there.

the battlefield of bitcoin has changed, and this is a direct result of segwit+taproot.

the faster you realize this and adapt to this new reality, the easier you'll have facing its challenges, and the more you will prosper from its opportunities.

good luck, folks.”

Source: