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Tx fees make up a bigger and bigger fraction of miner rewards over time.

by mrb 9mo ago

officialchicken 9mo ago
Rewards are also a permanent infinite money glitch that last in perpetuity? Or won't be changed in the future?
rcxdude 9mo ago
Is a store of value that requires a significant fraction of it be eaten up by transaction fees to maintain security going to be actually useful in the long term?
- _heimdall 9mo ago
  With regards to transaction fees, bitcoin is already not particularly useful today. It can make sense to be used as an alternative to wire transfers where you only occasionally send a transaction, but it isn't useful as a currency and any day to day transactions have to happen off chain and not use bitcoin at all.
  - rcxdude 9mo ago
    Right, which is why one has to wonder who's going to want to pay enough transaction fees to secure the network.
jcfrei 9mo ago
transaction fees are not increasing though, so they can't offset miner rewards. they have been in the $100k-$200k per day range for a long time, with only occasional breakouts: https://www.blockchain.com/explorer/charts/transaction-fees-usd https://www.blockchain.com/explorer/charts/transaction-fees-... and the trend is not to the upside. in fact with the arrival of ETFs in 2024 the trend is clearly downwards.
Saline9515 9mo ago
Rewards decrease due to halving and there is no guarantee that transaction fees will compensate it.
buzzin__ 9mo ago
But transaction fees reset to zero on each block. If relying solely on transaction fees, why would you mine if they are zero? So, on the start of each block, miners will shutdown, or perhaps switch to a different currency where it would be profitable to mine. This surely weakens the security of Bitcoin.
LikesPwsh 9mo ago
Making up a bigger fraction doesn't mean that transaction fees will increase over time. For L1 fees to actually increase over time, we need increased L1 throughput. Without that, increased demand for transactions causes more batching of transactions (mostly between exchanges). Given the failure of BCH for pseudo-religious reasons I don't have much hope.

Tx fees make up a bigger and bigger fraction of miner rewards over time.

by mrb 9mo ago

Tx fees make up a bigger and bigger fraction of miner rewards over time.

officialchicken 9mo ago

Rewards are also a permanent infinite money glitch that last in perpetuity? Or won't be changed in the future?

rcxdude 9mo ago

Is a store of value that requires a significant fraction of it be eaten up by transaction fees to maintain security going to be actually useful in the long term?

_heimdall 9mo ago
With regards to transaction fees, bitcoin is already not particularly useful today. It can make sense to be used as an alternative to wire transfers where you only occasionally send a transaction, but it isn't useful as a currency and any day to day transactions have to happen off chain and not use bitcoin at all.
- rcxdude 9mo ago
  Right, which is why one has to wonder who's going to want to pay enough transaction fees to secure the network.

jcfrei 9mo ago

transaction fees are not increasing though, so they can't offset miner rewards. they have been in the $100k-$200k per day range for a long time, with only occasional breakouts: https://www.blockchain.com/explorer/charts/transaction-fees-usd https://www.blockchain.com/explorer/charts/transaction-fees-... and the trend is not to the upside. in fact with the arrival of ETFs in 2024 the trend is clearly downwards.

Saline9515 9mo ago

Rewards decrease due to halving and there is no guarantee that transaction fees will compensate it.

buzzin__ 9mo ago

But transaction fees reset to zero on each block. If relying solely on transaction fees, why would you mine if they are zero? So, on the start of each block, miners will shutdown, or perhaps switch to a different currency where it would be profitable to mine. This surely weakens the security of Bitcoin.

LikesPwsh 9mo ago

Making up a bigger fraction doesn't mean that transaction fees will increase over time. For L1 fees to actually increase over time, we need increased L1 throughput. Without that, increased demand for transactions causes more batching of transactions (mostly between exchanges). Given the failure of BCH for pseudo-religious reasons I don't have much hope.