Been thinking…I realize this scary. So, what happens when all ₿ is mined, what incentive do the miners have to continue verifying transactions on the blockchain? Transaction fees?
Discussion
By design, transaction fees grow to slowly supplement and replace the block rewards.
#Bitcoin will be so valuable, miners will mine just to protect it's value
Fair, but is there no offset to defray their costs? What am I missing?
Incentives from all the corn they mined, plus energy will be very cheap and extremely abundant when that time comes along
Also, Bitcoin would of installed itself at the very heart of all economic activity, everything will depend on it
Everybody wants to Go Global, up until their bottom line is affected in whatever currency.
We've agreed on a Day and Time Standard. Why not a monetary one? This stuff will work across Space and Time.
Theoretically transaction fees, yes.
That and if no one mines and verifies transactions then by that time all the money will stagnate and be useless. It goes against people's interests to stop running miners
Transaction fees. Miners update the chain, which is how transactions are made. If Bitcoin is successful there will always be demand for transacting, and of course it won't be free. Transaction fees are the cost of securely sending Bitcoin, and will be paid by those sending Bitcoin. Block subsidies are just a way to bootstrap the network until adoption grows.
Thanks for the thoughtful reply. I swear I have fallen hard for #TheNostr, & this is one reason why.
"Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free."
- Satoshi Nakamoto, Bitcoin White Paper
Yes fees will be even more valuable then due to price appreciation no matter how little the amount of sats are. And the fact of the hash rate continuing to ripe is a strong signal for that growth to continue.
1. miners cant spend their earnings for 100 blocks
2. anyone who has had a recent transaction has incentive for blocks to continue being produced to alleviate risks of a double spend from chain rewrite
3. hash rate needs to be used.. related to #2, if its used for a shadow chain to rewrite further back it can be quite destructive.
4. yes transaction fees.. and if theres low/no transactions then space will inevitably be used for inscriptions and op_return messages from miners as a permissionless data distribution network.