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I’ve been thinking a lot about the time when all #Bitcoin will be mined. When that happens, no more Bitcoin rewards for each new block added to the blockchain, instead, the reward to the #miners will be transaction fees.

In this scenario, transaction fees on the #Bitcoin blockchain will have to be very high to pay all the energy being spent to protect the network.

So, in theory, the main network will only be used for high networth transactions that compensate the high fees required, which means, #Bitcoin will price out transaction of low value, and thus discriminate people with few sats.

Any thoughts on this?

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Discussion

d0708145... 1y ago

That's a looooong way off but what you're saying is essentially true. That's what lightning is for and goodness knows what else, over the coming years.

MRbtc 1y ago

Lightning can in fact reduce the number of transactions on the main network, but that is actually a danger, because less transactions, means more cost per transaction to pay miners.

This problem will start before 2140, when the block reward is low enough.

When that time comes they will not be called miners but will have eventually other designation.

MRbtc 1y ago

Today, each block has an average of around 4000 transactions. If today reward of 3.12 Bitcoin would go to zero, that would mean that each transaction fee, to compensate, would be 80000 sats, around $75!

Assuming that in 2140, all the world wealth will be transfered to Bitcoin, and assuming that each Bitcoin would be valued in todays dollars at $23M, that means that each transaction of 80000 sats would be worth around $18k!!!!

Speedster 1y ago

Energy spent on mining could also reduce to match the fees on offer. It doesn’t have to just be fees increasing.

MRbtc 1y ago

Correct, but if energy reduces, then its easier to have 51% hash power and compromise security.

Of course you can say that, when that time comes, no one will want to damage the network, BUT the risk exists and will be higher.

MRbtc 1y ago

What can happen, is that the price of energy in terms of Bitcoin reduces, and thus the fees can increase proportionally to the decrease of block reward, keeping the system more or less as is. But this means that energy must be valued in Bitcoin and that energy prices will fall gradually in terms of Bitcoin.

R 1y ago

People with few sats will be discriminated against starting….now.