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> by reducing fees, the LN reduces the incentive for Bitcoin miners to use large amounts of computing power That's great for the environment, but in the long t
by tromp 4y ago
> by reducing fees, the LN reduces the incentive for Bitcoin miners to use large amounts of computing power
That's great for the environment, but in the long term of vanishing block subsidies, not so great for Bitcoin's security, as the costs of 51% or censorship attacks also decrease.
- DJBunnies 4y agoBitcoin’s security has not changed.
- FabHK 4y agoFees have constituted just 1% to 2% of mining revenue over the last year (the other 99% being the mining reward ("coinbase") of 6.25 BTC per block). So, LN does not reduce the incentive for Bitcoin miners in any meaningful way, unless I'm mistaken.
- ETH_start 4y agoThe mining reward declines geometrically, with a halvening every four years.
- sillysaurusx 4y agoThat’s temporary. If you read the original white paper, satoshi designed bitcoin to be miner-free. “People will probably always be willing to verify transactions for free,” or something to that effect. The rewards will transition to that 1% fee as the entirety of their business model.