I imagine this will spell the end of bitcoin's (already poor) utility as a transact-able unit of value. As others have pointed out, transaction fees approach 1

I imagine this will spell the end of bitcoin's (already poor) utility as a transact-able unit of value. As others have pointed out, transaction fees approach 100% of the incentive, so fees will have to increase to incentivize the hash network to keep running. A lot of the hash power will drop out without mining on the table, and I think the net result will be that transactions will be much more expensive and slow than they are currently.