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You're forgetting the transaction fees. Not only is the number of bitcoin hard capped, but also the transaction rate. As the network stores more and more value
by npoc 2y ago
You're forgetting the transaction fees. Not only is the number of bitcoin hard capped, but also the transaction rate.
As the network stores more and more value, the demand for transactions increases against a fixed supply, driving fees higher.
The fees are independent of transaction amount, so what looks like high fees to someone transferring $1000 - let's say $50 fee - will be extremely cheap for someone transferring $1,000,000,000 (when you consider it includes final settlement, and loss-less storage of value for eternity).
By 2140 all of the miners income will come from transaction fees, by which time the base layer will likely be transferring millions and billions of dollars worth of value in each transaction.