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> There will surely be far fewer miners, which will decrease the real-world cost of mining a block (and also decrease the security of the system!) Maybe it'll
by hdhzy 9y ago
> There will surely be far fewer miners, which will decrease the real-world cost of mining a block (and also decrease the security of the system!)
Maybe it'll end up with bigger amount of smaller miners. Now the cost of entering mining is high but when the incentives will be smaller Bitcoin mining may end up where it begun - on small hardware. If fees sky rocket nobody would be using it. One way or another that'll be interesting times...
- mechanical_berk 9y agoSo I've thought about this a bit. Assume there are a fixed number of transactions per block (N), but a greater number of potential transactions that people would like to do. Also assume that there is a maximum percentage (of transaction amount) that people will be willing to pay as a fee (F). Then I think the transaction fee should tend to F * average amount of Nth largest potential transaction in a block window. The cost of mining a block ought to tend to just less than the average block payout (reward + fees). When the reward disappears, this will happen as miners shut down due to not being able to make a profit and the mining difficulty decreases. Only the most efficient miners will survive. I think this means a few big miners, rather than many small miners, as big miners are almost certainly more efficient.