Hey guys
MB this has been approached already, but I couldn't find it on the forums.
What happens when we reach maximum allocation of BitCoins?
Currently there are about 6m coins in circulation. I believe the maximum is 21m. I don't know the rate of creation, but I read somewhere than theoretically in 50 years time all the coins that can ever be created will be in circulation.
Question is: What then
At the moment, the nodes supporting the network are incentivised because they get paid a certain amount of coins per transaction, which they are allowed to create.
However when #BTC = 21m, nodes will not be allowed to create any more BTC.
So what incentives are there at that point for nodes to continue supporting the system?
MB this has been approached already, but I couldn't find it on the forums.
What happens when we reach maximum allocation of BitCoins?
Currently there are about 6m coins in circulation. I believe the maximum is 21m. I don't know the rate of creation, but I read somewhere than theoretically in 50 years time all the coins that can ever be created will be in circulation.
Question is: What then
At the moment, the nodes supporting the network are incentivised because they get paid a certain amount of coins per transaction, which they are allowed to create.
However when #BTC = 21m, nodes will not be allowed to create any more BTC.
So what incentives are there at that point for nodes to continue supporting the system?
Fees.
