The linked README links a draft RFC [1], the introduction section of which contains an explanation.
[1] https://datatracker.ietf.org/doc/html/draft-msporny-base58#s...
[1] https://datatracker.ietf.org/doc/html/draft-msporny-base58#s...
I assume the performance is acceptable when you're dealing with very small API tokens, but it would be totally unsuitable as a replacement for base64 in the context of, say, email attachments. Even using it for something like a PKI certificate would probably be asking for trouble.
It's not really obvious (IMO) from the wording of the specification, but step 2 of the decoding algorithm is actually a nested loop.