4 ms·

Won't this deincentivize Bitcoin commerce significantly though?

• wmf 12y ago
  Yes, unless off-chain systems are developed. It's also possible that transaction fees will stay low and miners will just stop mining.
  • kolev 12y ago
    The off-chain systems are a workaround. And I doubt they will be cost-free.
• gwern 12y ago
  Maybe, maybe not. Right now, anyone using Bitcoin pays for use through a) constant inflation of the monetary base through mining rewards, and b) transaction fees, for a+b. Once (a) disappears, (b) will rise... but will the new b be bigger or smaller? Given the inflexibility of mining rewards and the rarity of double-spends in the wild, it may well be that right now the block reward is wastefully high.