Subnostr

Are we sure that BTC miners will continue to mine after the supply limit is reached.

Satoshi is monetizing the market makers to create the market for him. Once the market is made, he can say, "good bye" to most of the market makers. He won't need them any more.

So when the supply limit is reached, the market will be made. And there will be a huge amount of transactions (if a true market was formed) that only a few miners (potentially one) will earn fees on.

As of now, BTC fees are completely free market (please correct me if I'm wrong). There's no fee setting, which is what we typically see in these types of markets.

In typical monopolies, fees always rise.

As of now, the bigger the transaction, the bigger the fee you’ll need to pay in order to compensate for taking up space inside the block. This is wrong. This should be inverse.

Zach⚡️ 2y ago

“Big” transactions are transactions which take up a lot of block space. That has no relation to the amount of value you are sending. You can send 100 Bitcoin for the same price that you can send 100 sats. It’s all about blockspace.

I’m not sure why you are assuming that miners will centralize without a block subsidy. Energy and computing are both naturally distributed all around the world, and if one big miner tries to artificially raise fees (which is not even very feasible) then it becomes more profitable for other miners to come back online and mine themselves. It’s a bit of a decentralization feedback loop.

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Discussion

Sasha 2y ago

Isn’t this done naturally through a halving process?

Despite the above, there would be less motivation in the form of monetary gain, so it would follow standard psychology