3 ms·
I think in the even longer term, when the price stabilises (ie. we are not in this growth/adoption phase) the transaction volume will dominate. And that’s beca
by aserafini 5y ago
I think in the even longer term, when the price stabilises (ie. we are not in this growth/adoption phase) the transaction volume will dominate.
And that’s because there will be no more Bitcoin to mine and the price will not be going ‘up’ by default, so mining will be chasing fees only. And the fees are related only to transaction volume.
- itake 5y agoMaybe I’m confused. I thought there is a finite supply of bitcoins. If they stop mining / hit the limit, the supply becomes fixed but the demand may increase. What happens then to the value of the coin?
- aserafini 5y agoThe price of a coin will go up but it won’t necessarily stimulate more expenditure of ‘mining’ energy because there are no more coins to ‘mine’. At that point the activity of miners would be better described as ‘transaction processors’ and in this phase, energy expended will be directly correlated with transaction fees. Yes you could say coin higher value would make the transaction fees ‘worth more’ but this effect will be completely dominated by the volume of the transactions themselves which will be much more variable. It’s like saying Western Union’s server costs can be affected by the USD/GBP exchange price. Sure, they can be but the far more dominant effect will be transaction volume.