3 ms·
Miner competes not only for block subsidy, but for tx fees as well. Those can be expected to dominate within 4 or 5 halvings, putting a lower bound on the energ
by tromp 6y ago
Miner competes not only for block subsidy, but for tx fees as well. Those can be expected to dominate within 4 or 5 halvings, putting a lower bound on the energy consumption of bitcoin.
- gus_massa 6y agoLet's imagine that overnight the price of bitcoin increase x50 to $1000000 like in the article. In a imaginary word where miners get only the block subsidy, they get x50 more money are incentive to use like x50 more electricity. In a imaginary word where miners get only the tx fees, they can reduce the fees x50 and get the same money. (Moreover, the size of the transactions will be x50 smaller in Bitcoins.) In the real world where miners get both, it's something in between more complicated, but each halving makes it more similar to the second scenario.