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Inflation is a tax that subsidizes transaction fees. Currently 98% of the miner revenue is paid out by inflation and 2% by the transaction fee.(1) As the Bitco
by webinvest 5y ago
Inflation is a tax that subsidizes transaction fees. Currently 98% of the miner revenue is paid out by inflation and 2% by the transaction fee.(1)
As the Bitcoin inflation rate falls, transaction fees will rise.
(1) https://www.theblockcrypto.com/data/on-chain-metrics/bitcoin/bitcoin-share-of-transaction-fee-from-total-miner-revenue-monthly https://www.theblockcrypto.com/data/on-chain-metrics/bitcoin...
- CryptoPunk 5y agoThere is no in-protocol mechanism to increase transaction fees in reaction to declining inflation.