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Miners are paid some $40m/day, through 1) creating more BTC (called "coinbase" here, "Seigniorage" more generally, leading to inflation) and 2) fees. For now,
by FabHK 5y ago
Miners are paid some $40m/day, through 1) creating more BTC (called "coinbase" here, "Seigniorage" more generally, leading to inflation) and 2) fees.
For now, the $100 miners siphon off per transaction are predominantly from 1), so those costs are not very visible.
And then of course the exchanges charging 20 to 120 bp (or more) for a roundtrip against money you can actually use. Coinbase (the exchange) alone takes around 0.4% of the entire crypto market cap per annum into its pockets.
- jklm 5y agoIf that seems crazy, wait until you hear about these companies called Stripe and Visa.
- FabHK 5y agoNot sure what you are talking about. 1. Stripe has revenue of $bn 8, Visa $bn 25, and Coinbase $bn 8. Are you suggesting that Coinbase provides as much utility as Stripe? 2. The equity market cap is about $tr 100, so Stripe and Visa together take about 0.03% of that per annum. Mind you: That is way too much. Credit cards are an inefficient oligopoly, and they've been fined by regulators for their extravagant fees. That's a whole topic in itself. But: Crypto is 10x worse.