I don't care about miners being profitable. I care about the cost of attacking the Bitcoin network.

If the block reward (fees + subsidy) grows slower than the market cap of btc a hypothetical double spend becomes more profitable.

However I doubt JPEG storage will help much in the long run. The only way I see the security budget working out long term is massive second layer settlement. And "arbitrary" data storage might help with that.

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Allowing the market forces to incentivize mining to decentralize rather than centralize decreases risk of any such thing ever happening.

Also, mining has to be profitable in order for miners to remain in operation. But the market can sort that out without people trying to intervene in ways that harm Bitcoin long term. It smells a little bit like people saying banks are too big to fail.

that isn’t how it works though.

douple-spend requires a 51% attack which is isolated from block reward.

the hash rate that is required is burdened by hardware and energy inputs, not any outputs.