ππππππ
Newbie question:
But when miners no longer have rewards for mining, why should they continue to validate transactions? π€
Discussion
fees
Are you saying that the fees will be enough as an incentive? Will they cover their expenses?
Fees, I think.
Are you saying that the fees will be enough as an incentive? Will they cover their expenses?
Some people think so. When hyperbitcoinization hits, all value will be accessed through Bitcoin.
The value of Bitcoin will increase significantly in the future.
So will it be very expensive for us to make an on-chain transaction? Will we have to do everything in layer 2?
Yes to all this. First of all, the transition to zero block reward won't happen in a vacuum. Miners will already have a vested interest in the Bitcoin network so they will want to continue validating if not for their own self interest.
That said, fees ought to sustain. This past week, we saw several blocks where the fees exceeded the block reward! Fees might be artificially high because of ordinal but I would imagine, if in the world of hyperbitcoinization, we would be looking at magnitudes more transactions and therefore equally high fees.
And yes, this then leads to the discussion of onchain fees being very high. I think it is inevitable and therefore L2 solutions matter. Layer one would be for savings and large occasional transfers and L2 for daily purchases.
I agree, but it would still be expensive every time we have to swap from on chain to layer 2... Will it be worth it for us savers?
I think there is an element of "critical mass" that has to be considered. If the scenario is ultra high onchain fees due to normal usage, then we are likely in or close to a hyperbitcoinized society. In this case, you're likely getting paid in lightning, not onchain. You're transacting with friends and merchants on lightning, not onchain. Majority of both your inflows and outflows of money will just natively be on lightning already.
The only time you would interact onchain is if you're putting away a large chunk of money into savings, buying a house, or something like that. I would think going from onchain to lightning would be even less common for regular folks. Likely companies with payroll will be the ones to do the onchain>lightning transactions.
Who knows maybe some sort of merchant service might evolve around onchain/lightning on/off ramping by aggregating transactions or something. Idk just thinking outside the box.
It's something to think about. Incentives for miners cannot disincentivise usability for savers.
I think BTC will be a value reserve and a guarantee for other crypto coins... Just like gold was in the beginning of fiat currency, before fiat has become a matter of faith in politicians.
The fees. In fact, if I'm not mistaken, in the
last few blocks they have gained more in fees than in rewards.
So in the future for us savers it will be very expensive in fees. swap btc to lightning
Will it be worth it?
It will be expensive, but I think more layers will be built besides lightning, so having to make a transaction at layer 0 will be rare.
Live BITCOIN e SECURITY BUDGET https://www.youtube.com/watch?v=HPTA9QEzcz8&t=3693s
Fees, but the feel will be much higher. But don't worry, the last BTC of 21m will be mined between 2137 - 2140. π