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> This practically guarantees the bitcoin market will become extremely liquid for extremely large amounts Isn't it actively walking towards block-halving and t

> This practically guarantees the bitcoin market will become extremely liquid for extremely large amounts Isn't it actively walking towards block-halving and there being a fixed number of coins in circulation (aka walking towards eventual illiquidity)?

yieldcrv 3y ago
by large amounts I was referring to large amounts of notional US dollars worth of bitcoin if bitcoin becomes more scarce with that large notional demand, it will be fewer bitcoin traded at higher prices regarding the block-halving issuance schedule, one of the advances bitcoin heralded 15 years ago was being an infinitely divisible asset. so if people want to hoard their bitcoin then smaller and smaller units can trade in that reality, to accommodate larger and larger notional values of fiat to trade. but this alone goes hand in hand with the purpose of the block halving - thats just a subsidy to spur a parallel economy, as the block reward is intended to be supplanted by the transaction fees to redistribute bitcoin. this is already working successfully, most bitcoin blocks this year have transaction fees greater than the block reward. the same has occurred on the Ethereum network for extended periods of time too. the SEC’s arbitrary and encumbering standard increases the number of transactions on the bitcoin network too. strengthening the velocity of transactions and therefore its transaction fee economy. this has come to fruition in every macroeconomic environment now. one can transparently see how bitcoin is hoarded, to me its more interesting that it matches the same distribution of most other asset classes. The M1 in currency is the tiny percentage actively traded and used as cash with merchants, a small percent of the float trades for equities, commodities. no-coiners try to use the same standards to denigrate bitcoin, but functionally bitcoin and crypto do meet their prior bars and surpass them solely due to the pressure.
- rspeele 3y ago
  > most bitcoin blocks this year have transaction fees greater than the block reward What? [1]https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.html#1y https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.h...
  - yieldcrv 3y ago
    thanks for the data, I stand corrected! I had read an exuberant twitter thread about ordinal inscriptions tl;dr the trend is up with spike periods of transaction fees making up 25 - 45% of the block reward. so with the exact same amount of activity after the next halving it will be 50 - 90%. that's a good indicator of network health and fulfilling its vision of the network sustaining itself after block rewards subside.

yieldcrv 3y ago

by large amounts I was referring to large amounts of notional US dollars worth of bitcoin if bitcoin becomes more scarce with that large notional demand, it will be fewer bitcoin traded at higher prices regarding the block-halving issuance schedule, one of the advances bitcoin heralded 15 years ago was being an infinitely divisible asset. so if people want to hoard their bitcoin then smaller and smaller units can trade in that reality, to accommodate larger and larger notional values of fiat to trade. but this alone goes hand in hand with the purpose of the block halving - thats just a subsidy to spur a parallel economy, as the block reward is intended to be supplanted by the transaction fees to redistribute bitcoin. this is already working successfully, most bitcoin blocks this year have transaction fees greater than the block reward. the same has occurred on the Ethereum network for extended periods of time too. the SEC’s arbitrary and encumbering standard increases the number of transactions on the bitcoin network too. strengthening the velocity of transactions and therefore its transaction fee economy. this has come to fruition in every macroeconomic environment now. one can transparently see how bitcoin is hoarded, to me its more interesting that it matches the same distribution of most other asset classes. The M1 in currency is the tiny percentage actively traded and used as cash with merchants, a small percent of the float trades for equities, commodities. no-coiners try to use the same standards to denigrate bitcoin, but functionally bitcoin and crypto do meet their prior bars and surpass them solely due to the pressure.

rspeele 3y ago
> most bitcoin blocks this year have transaction fees greater than the block reward What? [1]https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.html#1y https://bitinfocharts.com/comparison/bitcoin-fee_to_reward.h...
- yieldcrv 3y ago
  thanks for the data, I stand corrected! I had read an exuberant twitter thread about ordinal inscriptions tl;dr the trend is up with spike periods of transaction fees making up 25 - 45% of the block reward. so with the exact same amount of activity after the next halving it will be 50 - 90%. that's a good indicator of network health and fulfilling its vision of the network sustaining itself after block rewards subside.