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> Bitcoin's mining reward halves every couple of years. When the Bitcoin block reward becomes negligible, as it certainly will in within a few decades, the only

> Bitcoin's mining reward halves every couple of years. When the Bitcoin block reward becomes negligible, as it certainly will in within a few decades, the only thing funding Bitcoin miners will be transaction fees, so the entire cost of Bitcoin mining will be borne directly by users of the network. Just let everyone mine as much as they want. Don't limit the rate or the amount. All of a sudden, miners will have to self-regulate their output lest the currency become hyperinflated. You might not like that outcome, but if you say that is going to be the endgame anyway after a few decades, why not let it happen now?

modeless 9y ago
If you're asking why Bitcoin mining had to be heavily subsidized at the start, the reason is that Bitcoin had little value and little usage, so transaction fees were generally zero and a large mining incentive was necessary. Obviously that isn't true anymore, but the exact time inflation should end could not be foreseen in advance, and the inflation schedule was fixed at the start. If you're asking why the inflation schedule had to be fixed in advance, that's because otherwise there is no trustless way to ensure it stays in check. The genius of Bitcoin is the way it uses incentives to enforce rules in a distributed system made up of selfish and even malicious participants. As you say, miners would have to self-regulate against their own self interest, and that would not be stable.
linschn 9y ago
But the point is the rate is limited (1 block per 10 minutes) and the amount is also limited (by the value assigned to the transaction by the users). There will be no runaway mining, and the miners do not need to 'self-regulate'.
billytetrud 9y ago
Wow, what a terrible idea. Do you not know how inflation works? If a bank prints money for itself, do you think it worries how inflation is affecting its holdings? No, they have more holdings because they're the infiltrators. They have more monetary even as they devalue the currency. This is why Bitcoin is necessary. This is where bitcoin shines. Deflationary currencies are the future. Don't be that idiot that pretends temporary deflation events are the same as a currency that is intentionally deflationary.
- dang 9y ago
  Comments like this break the HN guidelines. Would you please (re-)read them and follow them when commenting here? https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

modeless 9y ago

If you're asking why Bitcoin mining had to be heavily subsidized at the start, the reason is that Bitcoin had little value and little usage, so transaction fees were generally zero and a large mining incentive was necessary. Obviously that isn't true anymore, but the exact time inflation should end could not be foreseen in advance, and the inflation schedule was fixed at the start. If you're asking why the inflation schedule had to be fixed in advance, that's because otherwise there is no trustless way to ensure it stays in check. The genius of Bitcoin is the way it uses incentives to enforce rules in a distributed system made up of selfish and even malicious participants. As you say, miners would have to self-regulate against their own self interest, and that would not be stable.

linschn 9y ago

But the point is the rate is limited (1 block per 10 minutes) and the amount is also limited (by the value assigned to the transaction by the users). There will be no runaway mining, and the miners do not need to 'self-regulate'.

billytetrud 9y ago

Wow, what a terrible idea. Do you not know how inflation works? If a bank prints money for itself, do you think it worries how inflation is affecting its holdings? No, they have more holdings because they're the infiltrators. They have more monetary even as they devalue the currency. This is why Bitcoin is necessary. This is where bitcoin shines. Deflationary currencies are the future. Don't be that idiot that pretends temporary deflation events are the same as a currency that is intentionally deflationary.

dang 9y ago
Comments like this break the HN guidelines. Would you please (re-)read them and follow them when commenting here? https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html