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Once the automatic coins are mined, the idea is you pay miners a tip to get your transactions completed. I'm more curious how they plan to handle a drop in pop
by jayd16 3y ago
Once the automatic coins are mined, the idea is you pay miners a tip to get your transactions completed.
I'm more curious how they plan to handle a drop in popularity from a security standpoint. Will the total compute always need to remain high enough to keep a bad actor from dominating? As popularity wanes that sounds expensive.
- treyd 3y agoTo maintain the current level of security then, all else being equal, the total fees collected will have to increase by the amount the subsidy decreases by. So each byte of block space will cost more for the person buying it. That could be an issue, but the solution to that problem is to extend the protocol to allow for more sophisticated "layer 2" systems so that the end-user experience has as small of a footprint as possible. Ideally without compromising security, which can be done with zero-knowledge proofs and such. But it's unclear if the political will is there from the community around the Bitcoin project.
- arealaccount 3y agoIn this case, wouldn’t institutions mine their own blocks in order to avoid high transaction fees?
- dale_glass 3y agoThere's no such thing as "own blocks". There's a single world-wide winner of the mining competition per 10 minutes. So if you want to have free transactions 50% of the time, the way to get there is to take the current world-wide mining capacity, and replicate it. That's obviously not a viable tactic.
- arealaccount 3y agoThat’s exactly what I’m wondering, if all the bitcoin is held as investment and not utilized as a currency, then there is no incentive to receive tips, so no incentive to crunch hashes, so how does it work then?
- zik 3y agoEven investments are bought and sold day to day, otherwise stock brokers would all go bankrupt.