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> Bitcoin has an artificial transaction cap because it's conservative. It's been raised before and will be raised in the future. I thought one of the founding
by NathanCH 8y ago
> Bitcoin has an artificial transaction cap because it's conservative. It's been raised before and will be raised in the future.
I thought one of the founding principles is that new money will not be created?
Unrelated to your comment, but re: #3 and #5 ...why shouldn't Bitcoin's value be the cost to mine it?
- esotericn 8y agoI'm confused by your first comment; the transactional throughput of Bitcoin is completely unrelated to money creation. On the latter - I think it's more up to you to show that it would be. The value of most things is unlinked from their cost of production. A really obvious example would be a five pound note. That said, yes, in the stable state, miners should only expend 1BTC-epsilon of 'effort' to produce 1BTC. So if a block contains 1BTC of transaction fees, you'd expect them to spend a maximum of 1BTC (currently ~$6000 USD) to produce a block. In reality it's a bit more complicated than that because the value fluctuates far more quickly than mining operations can or will scale up or down. So really, it's the opposite - 1BTC isn't worth the amount of effort miners put in, the amount of effort miners put in should be approximately 1BTC worth. Sort of.
- ghayes 8y agoHow are the `transaction cap` and `new money will not be created` related? A block can contain more transactions, but the block reward stays the same. Also, new bitcoin is created all the time (since that's what mining is).
- betterunix2 8y agoImagine that I am trying to convince you to buy some cookies I baked. Are you going to care about the effort I put into making the cookies when I ask you to pay me for them?