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What happens when nearly all of the 21 million Bitcoins are mined[1]? Will transactions not happen anymore? [1] - https://en.bitcoin.it/wiki/Controlled_Currenc

by pdog 14y ago

What happens when nearly all of the 21 million Bitcoins are mined[1]? Will transactions not happen anymore? [1] - https://en.bitcoin.it/wiki/Controlled_Currency_Supply#Projected_Bitcoins_Long_Term https://en.bitcoin.it/wiki/Controlled_Currency_Supply#Projec...

himlion 14y ago
Transaction fee's should support the network.
bglusman 14y ago
This is why transaction fees will increasingly be important as BTC matures, after all 21 Million are gone the only reward for "mining" will be the award of all transaction fees paid for transactions in that block, so much like the old west, mining is gradually replaced with banking/processing :-)
deleted 14y ago
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duskwuff 14y ago
The reward for mining a block just halved; it'll continue to halve as the supply increases, so that 21 million is not the endpoint so much as it is an asymptote.
- yebyen 14y ago
  That's not true. It will continue to halve, exactly one more time to 12.5, and then the next time after that, it will stop. Once the 12.5 reward is gone, the network will be supported entirely by transaction fees, and no new bitcoins will be created. So, yes, asymptote, but the rest of your comment seems misleading. It will halve once more, that's not exactly "continue to halve."
  - ewillbefull 14y ago
    What are you talking about? Check out the wiki page: https://en.bitcoin.it/wiki/Controlled_Currency_Supply#Projected_Bitcoins_Long_Term https://en.bitcoin.it/wiki/Controlled_Currency_Supply#Projec... It's supposed to halve 33 times.
    - yebyen 14y ago
      I am the one who is misinformed! I was also wondering how to reconcile this (seemingly very) early first halving with my concept of a 21 year bitcoin generation span. Thanks for clearing that up! *edit: Turns out I was misinformed about the 21 year thing too. These projections have the halving terminating estimated at 2140. Don't suppose either of us will be around to see it.
      - jamoes 14y ago
        And, actually, it may continue well beyond 2140. The only reason it would stop there is because the smallest value bitcoin can currently represent is 0.00000001 BTC (1e-8). Many people believe that the rising value of bitcoin will bring about a need to increase the number of decimal places that bitcoin supports. If this change is made to the protocol before 2140, the the mining reward will probably keep on halving to values even less than 1e-8 BTC.
    - AdmiralBeotch 14y ago
      It will halve every 210,000 blocks for about 140 years until the reward is 1 satoshi.
      - yebyen 14y ago
        I like it. Produce the proof that your rig solved the latest block, and you get your name in the book. Sounds much better than "no further rewards will be issued from this date."
    - nullc 14y ago
      Well— it's supposed to halve forever, but it runs out of precision eventually.
- pdog 14y ago
  That's why I said nearly all. By the end of the century, there will be one Bitcoin left to mine.

by pdog 14y ago

himlion 14y ago

Transaction fee's should support the network.

bglusman 14y ago

This is why transaction fees will increasingly be important as BTC matures, after all 21 Million are gone the only reward for "mining" will be the award of all transaction fees paid for transactions in that block, so much like the old west, mining is gradually replaced with banking/processing :-)

deleted 14y ago

[deleted]

duskwuff 14y ago

The reward for mining a block just halved; it'll continue to halve as the supply increases, so that 21 million is not the endpoint so much as it is an asymptote.

yebyen 14y ago
That's not true. It will continue to halve, exactly one more time to 12.5, and then the next time after that, it will stop. Once the 12.5 reward is gone, the network will be supported entirely by transaction fees, and no new bitcoins will be created. So, yes, asymptote, but the rest of your comment seems misleading. It will halve once more, that's not exactly "continue to halve."
- ewillbefull 14y ago
  What are you talking about? Check out the wiki page: https://en.bitcoin.it/wiki/Controlled_Currency_Supply#Projected_Bitcoins_Long_Term https://en.bitcoin.it/wiki/Controlled_Currency_Supply#Projec... It's supposed to halve 33 times.
  - yebyen 14y ago
    I am the one who is misinformed! I was also wondering how to reconcile this (seemingly very) early first halving with my concept of a 21 year bitcoin generation span. Thanks for clearing that up! *edit: Turns out I was misinformed about the 21 year thing too. These projections have the halving terminating estimated at 2140. Don't suppose either of us will be around to see it.
    - jamoes 14y ago
      And, actually, it may continue well beyond 2140. The only reason it would stop there is because the smallest value bitcoin can currently represent is 0.00000001 BTC (1e-8). Many people believe that the rising value of bitcoin will bring about a need to increase the number of decimal places that bitcoin supports. If this change is made to the protocol before 2140, the the mining reward will probably keep on halving to values even less than 1e-8 BTC.
  - AdmiralBeotch 14y ago
    It will halve every 210,000 blocks for about 140 years until the reward is 1 satoshi.
    - yebyen 14y ago
      I like it. Produce the proof that your rig solved the latest block, and you get your name in the book. Sounds much better than "no further rewards will be issued from this date."
  - nullc 14y ago
    Well— it's supposed to halve forever, but it runs out of precision eventually.
pdog 14y ago
That's why I said nearly all. By the end of the century, there will be one Bitcoin left to mine.