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It is true that if mining revenues fall, less profitable miners will drop off, lowering the difficulty, eventually reaching an equilibrium where some population
by dustcoin 12y ago
It is true that if mining revenues fall, less profitable miners will drop off, lowering the difficulty, eventually reaching an equilibrium where some population of miners continue to mine.
The big question is: Will the amount of hashpower willing to mine for only transaction fees be enough to secure the network against 51% attacks?
- ghshephard 12y agoOne target for transactions is about 4,000 transactions/second. If they reduce the confirm time to 60 seconds like DogeCoin, then we are looking at about 240,000 transaction fees per block. Figure $0.10/transaction, that's about $24,000 per block. Right now it's 25 * $600, or $15,000 block - so, I can see there being a future on transaction fees on Bitcoin Alone. But - there are a lot of other really interesting applications that can be run on the block chain, and I can see people willing to pay much greater transaction fees than $0.10 to get their transaction recorded on the block chain - so plenty of interesting opportunities.