4 ms·

It can not stabilize the block reward pays for the mining the fees are almost irrelevant. block reward halves every 4 year so the price has to double at least e

by noxer 6y ago

It can not stabilize the block reward pays for the mining the fees are almost irrelevant. block reward halves every 4 year so the price has to double at least every 4 year. if it does not it will become lucrative to do double spends at some point. Its designed to crash some day because there is no endless doubling at constant time.

tromp 6y ago
"Almost relevant" is more like it [1]. We can expect fees to dominate the block reward in about 3-4 halvings. Which will unfortunately lead to some instability [2]. [1] https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.html https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.h... [2] https://www.cs.princeton.edu/~arvindn/publications/mining_CCS.pdf https://www.cs.princeton.edu/~arvindn/publications/mining_CC...
- noxer 6y ago
  Thats simply nonsense the only way fees could ever pay for it would be if transaction become extremely expensive. You can calculate yourself how much a Tx would have to cost if it should replace the current block reward. 6.25 BTC every 10 min that's currently about 120k USD. If we assume 4200 Tx in that time which is very unlikely it would result in roughly 30 bucks per Tx if and only if the network is on max load 24/7 which basically means a way higher fee to get Tx trough in a meaningful time. ofc its possible but who would want that anyway. Tx are already moved off chain because the current fees are already too much for most transactions. Combined that with the fact that almost all people who hold, mine or otherwise use BTC do so because it gains in value. If it stops doing that there is even less reason to move BTCs around and justify high transaction costs. The sole reasons it doesn't matter now is because the average gains is so high it covers all that cost. If the gains are gone it over in the long run. A collective of user literally must spend 120k USD every 10 min to keep that thing running. That money indirectly comes from price gains there is absolutely nothing else there. The people who just want to move value "fast" and "cheap" dont need BTC they switch to whatever is the best at a time. There is no way they will do 30 bucks transactions if the alternatives can do it for fractions of a cent. Even if some hypothetical risk is higher for other coins. Some kind of insurance will cover that and wont cost 30 bucks per transaction.

by noxer 6y ago

tromp 6y ago

"Almost relevant" is more like it [1]. We can expect fees to dominate the block reward in about 3-4 halvings. Which will unfortunately lead to some instability [2]. [1] https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.html https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.h... [2] https://www.cs.princeton.edu/~arvindn/publications/mining_CCS.pdf https://www.cs.princeton.edu/~arvindn/publications/mining_CC...

noxer 6y ago
Thats simply nonsense the only way fees could ever pay for it would be if transaction become extremely expensive. You can calculate yourself how much a Tx would have to cost if it should replace the current block reward. 6.25 BTC every 10 min that's currently about 120k USD. If we assume 4200 Tx in that time which is very unlikely it would result in roughly 30 bucks per Tx if and only if the network is on max load 24/7 which basically means a way higher fee to get Tx trough in a meaningful time. ofc its possible but who would want that anyway. Tx are already moved off chain because the current fees are already too much for most transactions. Combined that with the fact that almost all people who hold, mine or otherwise use BTC do so because it gains in value. If it stops doing that there is even less reason to move BTCs around and justify high transaction costs. The sole reasons it doesn't matter now is because the average gains is so high it covers all that cost. If the gains are gone it over in the long run. A collective of user literally must spend 120k USD every 10 min to keep that thing running. That money indirectly comes from price gains there is absolutely nothing else there. The people who just want to move value "fast" and "cheap" dont need BTC they switch to whatever is the best at a time. There is no way they will do 30 bucks transactions if the alternatives can do it for fractions of a cent. Even if some hypothetical risk is higher for other coins. Some kind of insurance will cover that and wont cost 30 bucks per transaction.