Aaron Herbst's avatar
Aaron Herbst aaron@herbstmeister.com 1 year ago
Transaction fees on Bitcoin is a supply and demand based system, which directly affects the energy put into Bitcoin mining. At 21,000,000 if there is not much demand for transactions, mining will become less profitable. Will mining ever become less profitable than attacking the network?

Replies (9)

frphank's avatar
frphank 1 year ago
Sounds like a plan. Maybe comment on the issue?
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npub1vlnd...6dyv 1 year ago
It's not the number of sats that matters, it's their purchasing power. That code that you want to delete is what's driving the purchasing power. You severed the very branch you were perched on.
Chad Lupkes's avatar
Chad Lupkes 1 year ago
So, would this keep the reward at 3.25 until we reach 21 million and then just stop? That would be horrible. What would be even worse is if we got to 20.9999 million and someone decided that we needed to lift the cap so that the inflation could continue. That negates the entire reason for the entire system. Just because the inflation rate is lower than gold doesn't mean it is at a "good" level. Inflation of circulating currency should be zero. And it effectively is zero because we know the eventual cap of 21M will be reached. By that point, actually LONG before that point, transaction fees will far exceed the block reward and it will be seen as just a bonus that keeps the original programming in place.
Chad Lupkes's avatar
Chad Lupkes 1 year ago
What an economy needs first is a solid foundation. We can work with a deflationary currency. What we cannot do is continue with inflationary currencies. That's just like building a house on quiksand.
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