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No incentive to support the network if there's no block rewards. The transaction fees are not sufficient and just meant to prevent spam. It's also better to tax
by hanniabu 8y ago
No incentive to support the network if there's no block rewards. The transaction fees are not sufficient and just meant to prevent spam. It's also better to tax the network as a whole (through this set inflation) than to tax for each usage.
- sbenitoj 8y agoI misunderstood you at first. That’s an interesting speculation, but it remains to be seen what will happen when inflation is near zero. If people value transacting on the network, then they will pay the necessary fees to keep it running. If they don’t then it will go down. I suspect this isn’t the big issue people think it is, regardless there’s no way to “prove” that transaction fees won’t be enough — everyone from miners to speculators by owning mining equipment and Bitcoin are specifically betting that transaction fees will be enough.
- hanniabu 8y agoThere's an assumption here that the network will be used and valuable. If the network is used more it will be more valuable, which means the reward value will increase as the inflation decreases. If nobody uses the network then it'll be worthless, which at that point it doesn't matter since nobody is using it.