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Each transactions has a fee value set by the sender, that goes to the miner. Miners select the top N transactions by fee, so miners will still have an incentive
by albntomat0 6y ago
Each transactions has a fee value set by the sender, that goes to the miner. Miners select the top N transactions by fee, so miners will still have an incentive.
- tharkun__ 6y agoThe fees are already exorbitant and make no sense if you wanted to use Bitcoin for everyday transactions. You still see merchants that have something like a 2$ minimum for credit card transactions, which charge a percentage fee usually. Looking at https://ycharts.com/indicators/bitcoin_average_transaction_fee https://ycharts.com/indicators/bitcoin_average_transaction_f... the average Bitcoin fee seems to be somewhere around $22 right now. Just think of the dialog occurring once miners have to make all their money from fees only: "Yes sir, I would like to buy this chewing gum for my son. Yes I know it costs $0.50. Yes I know it will cost me the equivalent fee of $50 to buy it using Bitcoin. Now sell it to me already!".
- albntomat0 6y agoTrue. Bitcoin as currently designed doesn't support the transaction throughput or latency anyways for folks to buy gum, only larger money transfers. (I'm a skeptic, FWIW) Without the presence of transaction fees though, things would fall apart once the block reward ran out, as asked in the original question.