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> There will be an eventual cap at 21 million bitcoins. At the increasingly slow rate that coins are produced, this won't happen for some. But assuming that bi
by jervisfm 13y ago
> There will be an eventual cap at 21 million bitcoins.
At the increasingly slow rate that coins are produced, this won't happen for some. But assuming that bitcoins are still around and in use at the point in time in the future when this happens, what will be the effect of this?
The supply is fixed and no more can be produced; and since it's still around, chances are there is demand / usage that would likely grow. The likely result seems to be that from that point onwards, bitcoin's value would only grow to due an increase in its scarcity. Perhaps, this is a possible justification or rationalization for bitcoins as a (very) long term investment.
Also, not too familiar with the internal bitcoin protocol but what will happen to the network of miners who help with verifying / maintaining the transaction ledger? I think the reason they participate is that they are (proportionally) rewarded for their services in new bitcoins. When this is no longer the case, who will agree to do this work then?
- zwily 13y agoMiners will continue to mine for the transaction fees.
- deleted 13y ago[deleted]
- nmarley 13y ago> When this is no longer the case, who will agree to do this work then? The miners will still get transaction fees even after all the Bitcoins have been mined.
- nimblegorilla 13y agoHonest question: why are bitcoins scarce? I understand that the supply of real bitcoins is limited, but what is preventing all of the other cryptocurrencies from taking off?
- jnbiche 13y ago>what is preventing all of the other cryptocurrencies from taking off? Nothing at all. There have been dozens of "competing" digital currencies for several years now. Litecoin came along in early 2011. And it's extraordinarily easy to change Bitcoin to other digital currencies (much easier than USD <> digital currencies). So obviously being first counts for a lot here. The network effect is strong.
- informatimago 13y agoIt is an artificial scarcity embedded into the system AFAIK. Or is there something that forces the null prefix lenght to change? As an artificial scarcity, it strikes me similar to the king of an island who would collect all the shells, and distribut only a few of the as money. Any would be king could start to collect square shaped pebbles, and do the same. At least, the one who would choose to hoard coconuts would provide for money something that can be used, that has some intrinsic worth.