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Interesting that they don't mention that the controlled inflation for bitcoin has (and will) lead to higher transaction costs. The piper must be paid somehow.
by seanalltogether 5y ago
Interesting that they don't mention that the controlled inflation for bitcoin has (and will) lead to higher transaction costs. The piper must be paid somehow.
- dannyw 5y agoNot really. Transaction fees are determined by supply and demand. Supply is currently limited to 1MB/10min more or less, and demand is however many people wanting to make bitcoin ttandactions. The bitcoin production schedule has nothing to do with TX fees.
- gizmo686 5y agoAnd the security of the system is proportional to the total amount spent in transaction fees (plus block rewards, which taper off). Yet security concerns play no role in setting tx fees.
- imtringued 5y agoRight now the security guards are being paid with the block reward. Once that is over each transaction has to pay for the security guards.
- varajelle 5y agoRight now security guard are being paid way too much and use their money to waste too much energy. When the block reward will decrease, so will the energy use. But the transaction cost is not impacted by the reward.