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Will this likely increase typical transaction fees to make up for block reward?
by chrisshroba 6y ago
Will this likely increase typical transaction fees to make up for block reward?
- ur-whale 6y agoTransaction fees follow supply and demand for blockchain space. They haven't been correlated to block reward AFAIK.
- miguelmota 6y agoTransaction fees are driven by transaction volume. The more congested the network, the higher fees will be because there's a limit to how many transactions can fit in a block. If there's normal transaction volume on the network then transaction fees will remain the same. Miners can choose to reject any transactions but equally they'll also be miners who accept any transaction.
- ajkdhcb2 6y agoIn the long term yes the halving schedule must lead to huge fees (eventually there will be zero inflation). As inflation decreases, miners have to be paid by fees to secure the network. Otherwise the security collapses.
- gridlockd 6y agoThe fees are paid by the users of the network, if the demand on network transactions is low, there will be little reward for mining. This means that without sufficient demand for transactions, a majority of miners would have to abandon the network, which would indeed put network security at risk. Therefore I predict that the miners will make the supply of Bitcoin unlimited, should that situation occur. They already got their way with keeping the Bitcoin block size fixed, which kept transaction fees high.
- lalaland1125 6y agoNo. There is no causal relationship between the two. Transaction fees are driven by usage in that they increase the more the network is over capacity. Miners cannot "demand" more fees as the supply is inelastic.