I actually start to think: the opposite is true.
Why do you think that? 
Topic: Altcoins with permament inflation destined to fail? - page 2. (Read 1522 times)
It is a well-known fact that miners need to have an incentive to build blocks. A currency that solely relies on altruistic behavior cannot be really secure.
I actually start to think: the opposite is true.
It is a well-known fact that miners need to have an incentive to build blocks. A currency that solely relies on altruistic behavior cannot be really secure.
Apart from transaction fees (which have their own issue of leading to a Tragedy of the Commons), most cryptocurrencies provide some form of inflationary block rewards. But can such a reward model work in the long run?
I doubt it, at least for PoW blockchains. Since the market capitalization of the currency cannot grow forever, sooner or later the block rewards, i.e. the value of the coins created by the miners will decrease and eventually tend to 0. With shrinking profits, the miners will invest less money into their mining equipment, so that the hash rate will decline over time. And so will the cost of attacking the coin.
What do you think?
Apart from transaction fees (which have their own issue of leading to a Tragedy of the Commons), most cryptocurrencies provide some form of inflationary block rewards. But can such a reward model work in the long run?
I doubt it, at least for PoW blockchains. Since the market capitalization of the currency cannot grow forever, sooner or later the block rewards, i.e. the value of the coins created by the miners will decrease and eventually tend to 0. With shrinking profits, the miners will invest less money into their mining equipment, so that the hash rate will decline over time. And so will the cost of attacking the coin.
What do you think?
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