The small transaction problem is vastly worse with Bitcoin, though. The catch is that the transaction fee is paid by the buyer, so that $1.05 scone costs the consumer $8.05.

$1.05 goes to the consumer $8 transaction fee goes to the miner Some fraction (eventually most) of that $8 transaction fee goes to the energy company supplying the miners with electricity.

Now your $1.05 scone transaction includes the cost of charging a Tesla battery 3 times over, because that's how much energy went into the transaction on the blockchain.