- This topic has 3 replies, 1 voice, and was last updated 2 months ago by Bapster69420.
- Wednesday, October 5th, 2022 at 14:39 #387470impliedinsultParticipant
I have heard it brought up that the bitcoin network will not be secure once the block rewards are no longer part of the incentive mechanism.
Are there any good resources where these points are debated on both sides?
Will transaction fees make up for the loss of a block fee? Is there concrete math that demonstrates this?Wednesday, October 5th, 2022 at 14:47 #387471Mr_P_Nissaurus
When I got into Bitcoin, the reward was 50 BTC => 350 rotisserie chickens.
Now, the reward is 6.25 BTC => 24,860 rotisserie chickens.
Yes, ultimately transaction fees will be plenty to motivate people to mine Bitcoin, as the long term price of Bitcoin will only go up over time.Wednesday, October 5th, 2022 at 15:12 #387472igadjeed
The purpose of transaction fees is to deter transaction spam, and transaction spam is in the eye of the beholder. That is, accepting zero-fee transactions encourages behavior which leads to a tragedy of the commons, overfull blocks. The current fee regime seems to be effective at deterring this potential tragedy
Fee rates (per vbyte) are chosen by the transaction sender. If Bitcoin is working well, its blocks will rarely be full, and senders will have no reason to pay more than the minimum fee rate. At the current minimum fee rate and 60% full blocks, each block will pay fees of 0.006 BTC
The purpose of the block reward is to issue new coins, from block #1 until the controlled supply schedule issues the last new Satoshi in block #6929999
> incentive mechanism
Not required. Miners do not need to be paid
> the bitcoin network will not be secure
Bitcoin is secured by its node network. The role of mining is to delay blocks by 10 minutes so that the node network stays synchronized
It’s common to characterize the coin issue as reward, subsidy or incentive. “Incentive” is used in the Satoshi white paper, but note this quote
> The incentive may help encourage nodes to stay honest
In this quote “nodes” means “miners”. The quote means it may not necessarily be an incentive
> Will transaction fees make up for the loss of a block fee?
The transition is very slow. There’s no sudden loss. As the halvings reduce the block reward amount, miners gradually receive less and less. Bitcoin mining gradually transforms from for-profit to hobby, motivated by altruismWednesday, October 5th, 2022 at 15:20 #387473Bapster69420
One point to add is that as we move toward more renewable energy sources, the power cost to produce trend lower so with a high btc value by that time, satoshis which have move tremendously higher could cover energy costs which have moved lower
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