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"That’s a reasonable approximation" No, because the authors don't understand how miners gain revenue. For every dollar of miners revenues, currently $0.02 come
by mrb 8y ago
"That’s a reasonable approximation"
No, because the authors don't understand how miners gain revenue. For every dollar of miners revenues, currently $0.02 come from tx fees and $0.98 come from the block reward (12.5 BTC today.) Therefore with everything remaining equal (same average fee per tx, which is the authors' assumption), if the tx rate grew 50x it would increase miners revenues to $1.98, hence only doubling revenues and power consumption.
- Retric 8y agoIt’s got a fair amount of volatility. The Reward (last 24h) 1,688 + 115.2 BTC https://bitinfocharts.com/bitcoin/ https://bitinfocharts.com/bitcoin/ So, 115.2 / ( 1,688 + 115.2) = 6.4% not 2%. However, looking at historical data the current fees are well below the cap. https://bitinfocharts.com/comparison/bitcoin-transactionfees.html https://bitinfocharts.com/comparison/bitcoin-transactionfees... Now, currently Bitcoin can’t scale transactions so extrapolation is kind of up in the air. But, in practice if it’s going to survive it needs to create value to offset the cost of mining.
- mrb 8y agoLike I said in my top post, 2% is calculated from the 60-day (not 24-hour) average. True, we will never be able to extrapolate future fees. I'm merely pointing out the authors did it in a way that is completely bogus.