Bitcoin Core v30 Sparks Debate Over Block Size Expansion, Data Storage Risks

Bitcoin's recent software upgrade, Core v30, dramatically increased the OP_RETURN data limit from 80 bytes to up to 4 megabytes, sparking intense debate within the community. Proponents argue this move enhances neutrality by allowing market forces to dictate on-chain data, while critics warn it risks network congestion, higher costs for miners, and threatens Bitcoin's foundational principles of minimalism and decentralization. In response, a new Bitcoin Improvement Proposal (BIP-444) suggests a temporary soft fork to sharply limit non-financial data, aiming to prevent misuse of the blockchain for illicit content and to protect node operators from potential legal liabilities. However, controversy surrounds the proposal's language, which some interpret as coercive or legally intimidating, sparking fears about censorship and undermining Bitcoin's decentralized ethos. Meanwhile, the community remains divided, with some defenders viewing the restrictions as necessary safeguards, and critics emphasizing the historical acceptance of arbitrary data on Bitcoin. These technical and ideological disputes coincide with significant market activity, including large movements from long-dormant wallets and shifts in holder behavior, reflecting broader uncertainty about Bitcoin's future direction.