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you should consider what the price to mine is vs the reward. as long as the reward > price to mine, the miners will keep mining. once it drops, you will either
by rantwasp 6y ago
you should consider what the price to mine is vs the reward. as long as the reward > price to mine, the miners will keep mining. once it drops, you will either have miners dropping off the networks or the difficulty decreasing until another equilibrium is reached. once you have less miners it's possible that the TX fees will increase if you want your transactions mined (the miners cannot really impose a transaction fee. it's the transactions with the highest fees that get mined into a block and incorporated into the block chain)
- empath75 6y agoin a free market, the price for any commodity should roughly track the cost of producing it.
- rantwasp 6y agoyou're working with the assumption that it's a commodity. It's more like a currency than a commodity. also, is the price of gold for example really tracking the cost of producing it?
- empath75 6y agoEither side of that equation can lead — if the price of gold rises from speculators, miners will start employing costlier means of extracting the metal to meet demand.