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Not OP, but here's a thought that has bugged me for a while: The bitcoin block reward is currently 12.5 BTC which equals to about 42500$. Put differently, this
by jcfrei 9y ago
Not OP, but here's a thought that has bugged me for a while: The bitcoin block reward is currently 12.5 BTC which equals to about 42500$. Put differently, this means that the market currently values 1MB of (transaction) data on the bitcoin blockchain at over 40'000 USD and miners will (collectively) spend about as much for mining each block. This is clearly not economically reasonable, unless of course you believe bitcoin will for some odd reason become the only safe haven for storing wealth. In reality though the price of a crypto currency and its blockchain should depend on the utility it provides to society.
- taysic 9y agoIf the system works then it must be worth $40000 to the users of the block chain. There is a valid point to be made about energy efficiency but this possibly is right for the price of securing a global "bank".
- tylersmith 9y agoMining protects all transactions that have occured not only those in the current block. But yes, long term the block size will need to increase or transactions will need to pay much higher fees (probably as a result of transaction aggregation, e.g. Lightning channels).