Topic: after all BTC has been mined, what then? - page 2. (Read 5065 times)
after btc its ltc
Wait a couple of decades, you'll see transaction fees close in on block rewards.
I sorta understand the concept of mining. But how exactly do miners mine for transaction fees? I don't quite understand who GETS these fees, why they get them, etc.
Users include fees (normally 0.1 mBTC) when creating txs. It is possible to send some tx without a fee but lately free tx confirmation times have been long.
When miners include txs into a block they collect all the fees from the tx they include and also collect the block subsidy (which was initially 50 BTC and is now 25 BTC).
I sorta understand the concept of mining. But how exactly do miners mine for transaction fees? I don't quite understand who GETS these fees, why they get them, etc.
Miners get the transaction fees. It's their payment for processing your transactions.
Theoretically transaction fees should be enough of an incentive for miners to mine even without new Bitcoins per block. But personally I have my doubts about that. At least as it stands right now, fees make up less than 1% of the Bitcoins miners make from each block. Once new Bitcoins per block drop, transaction fees are going to need to rise substantially, and I'm not sure how that's going to happen.
I sorta understand the concept of mining. But how exactly do miners mine for transaction fees? I don't quite understand who GETS these fees, why they get them, etc.
After 2030, we will have mined about 99% of all bitcoins. Between 2030 to 2140, it's going to look the same. Miners will mine for transaction fees, mostly, until miners will mine for transaction fees only.
By then bitcoin will have changed A LOT, trust me.
haha! That is for sure. We don't know what tomorrow entails for Bitcoin.
After 2030, we will have mined about 99% of all bitcoins. Between 2030 to 2140, it's going to look the same. Miners will mine for transaction fees, mostly, until miners will mine for transaction fees only.
By then bitcoin will have changed A LOT, trust me.
Now I got it, thanks to both of you
Reading that just showed me how far off of mining I'm
Reading that just showed me how far off of mining I'm
After 2030, we will have mined about 99% of all bitcoins. Between 2030 to 2140, it's going to look the same. Miners will mine for transaction fees, mostly, until miners will mine for transaction fees only.
I don't get it, how do you know after 2030 99% will be already mined? and why 2140? care to explain? I don't really know much about mining
This is because every now and then, the amount of Bitcoins given to miners (currently: 25) per block decreases.
https://en.bitcoin.it/wiki/Controlled_Currency_Supply
Look at the table Projected Bitcoins Long Term
By about 2025, we'd have mined 20 million bitcoins already. It will then take the next one hundred years to mine the last million.
Look at the table Projected Bitcoins Long Term
By about 2025, we'd have mined 20 million bitcoins already. It will then take the next one hundred years to mine the last million.
After 2030, we will have mined about 99% of all bitcoins. Between 2030 to 2140, it's going to look the same. Miners will mine for transaction fees, mostly, until miners will mine for transaction fees only.
I don't get it, how do you know after 2030 99% will be already mined? and why 2140? care to explain? I don't really know much about mining
After 2030, we will have mined about 99% of all bitcoins. Between 2030 to 2140, it's going to look the same. Miners will mine for transaction fees, mostly, until miners will mine for transaction fees only.
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1) how will the system distribute transactions to be processed (for that matter, how does it happen now)
nodes relay tx to their peers, eventually tx reach miners, miners place them into blocks and look for a solution (hash below target value). Nothing will change when the block subsidy goes to zero.Miners are compensated by block subsidy + transaction fees. As the block subsidy declines (over the next 100 to 130 years) fees will become more important.
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2) can you bypass fees altogether by using your own wallet and hashing to process the payment?
sure however understand it takes a significant amount of hashing power to solve a lock in a reasonable timeframe. There are 144 blocks per day or 4,320 per month (on average). You would need be able to solve 3-4 blocks per month to have high chance of ensuring you will solve at least 1 in 30 days (there is an element of luck). So you would need about 1/1000th of all the hashpower on the network. Currently the network is ~4 PH/s so we would be talking about 4 TH/s and that number will be higher in the future. Honestly it probably makes more sense to just pay the tiny tx fee.
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3) will pools then cease to be viable?
Nope as above everything will be the same.
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4) since fees will be based on byte size of transaction, what impact will using different bitcoin addresses for each transaction be versus nout having different ones?
No. Bitcoin works on the concept out inputs and outputs. The input for a tx is the output of a prior tx. Using 3 inputs from a single address takes up exactly the same amount of spaces as 3 inputs from different addresses.
Transaction fee's will be the miners bread and butter, but that is very very far away.
you are really concerned about something that won't happen until 2140?? It will be an entirely different world by then in most every possible way.
Miners will still mine for transaction fees.
As I understand it, then 100% of all hashing resources will be to process transactions?
1) how will the system distribute transactions to be processed (for that matter, how does it happen now)
2) can you bypass fees altogether by using your own wallet and hashing to process the payment?
3) will pools then cease to be viable?
4) since fees will be based on byte size of transaction, what impact will using different bitcoin addresses for each transaction be versus nout having different ones?
1) how will the system distribute transactions to be processed (for that matter, how does it happen now)
2) can you bypass fees altogether by using your own wallet and hashing to process the payment?
3) will pools then cease to be viable?
4) since fees will be based on byte size of transaction, what impact will using different bitcoin addresses for each transaction be versus nout having different ones?
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