Scaling Bitcoin To Eight Billion People
Discussion
If the fees is less , does it mean there are fewer transactions happening ?
#askNostr
That is the easiest way to think about it. Lower fees mean there is less competition for block space, so you don't have to pay so much to get a miner to include your transaction in a block.
Thanks for the video, Matthew.
This might be a hot take, but I wouldn’t be too opposed to a tail emission if that’s what it takes to keep incentivizing miners to secure the network.
I would imagine that plenty of people will want to use the base layer, so there would be enough transaction fees that this wouldn’t be necessary. But if everyone transitions to lightning or bitcoin banks, we might need to stop halving the reward.
A 0.01 BTC block reward would be .0025% increase in the supply every year. Bitcoin would easily maintain its status as the hardest money. It would be a small price to pay in my opinion.
This is a problem that we will face decades from now, and there are good arguments for both sides. Maybe solo miners will be willing to take a loss to secure the network or maybe energy will be so cheap that everyone will be mining bitcoin.
I’m curious what everyone thinks.
I'll never run it. you can't make me
It seems unlikely as of right now. I’m just pointing out that it’s a possibility.
I understand that I may not be able to make you and the government may not be able to force you, but the market can effectively force you. If there aren’t enough miners on the chain without a tail emission, it is vulnerable to a 51% attack. If all the miners migrate to the new chain for the slightly higher block reward, it would be more secure. The more secure chain would naturally have more users and a higher value per coin.
What you're describing literally already happened in 2017. Its called BCH. check the chart against BTC haha. And they weren't even trying to dilute people haha
Question for you Matt:
I think there has been some legitimate concern lately for what happens when we reach a very low block subsity or no subsity. I am less concerned about IF Bitcoin can scale, but whether it is scaling to much. I think there is concern in 100 years +/- that your average person will rarely or never, transact on layer 1. Demand needs to increase on layer 1 to incentives the miners to collect transaction fees. If miners don't recieve enough revenue in fees, then they are not incentivized to increase their hash power, and therefore not increasing the cost of production. since commodities tend to rise/fall to their cost of production, we could see the Bitcoin price stall. Am I totally off here? Am I simply greatly underestimating layer 1 demand by banks/nation states/big corporations or overestimating layer 2 expansion in the future? Is this stall a feature rather than a bug?
Thank you if you even read this. You orange pilled me 5 years ago and can't thank you enough. You have changed myself and my families life.
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