Topic: The fee income is the future for bitcoin - page 3. (Read 2816 times)

Miners have a huge cost, if they collect 100 coins fee in each block, they might have spent 90 coins in infrastructure/management/electricity. In fact, miners might raise the fee to compensate for their income if the bitcoin price is not improving, this can be market based behavior

The fee, although small from individual transaction point of view, is huge from all the transactions combined point of view. Imagine that average transction is 0.5 btc, and every one is totally fine with 0.2% of fee, and a large block in future can handle 100000 transactions per block, then the fee collected by miners per block will be 100 bitcoins, is there any problem?

The biggest benefit of bitcoin monetary system is total limited money supply. This character will never change even the miners are collecting more fees. Satoshi has indicated that in future mining fee will replace the block reward, but he never said the fee should be lower than block reward, maybe he has envisioned a future of 100+ bitcoins per block fee

As time passes by, with bigger and bigger blocks (hopefully), more and more transactions will fit into a single block, reducing the need for high fees (or at all?!)
I do not see nor want a future where miners have such power as u describe, it's counter productive imho; not the way it was created to be

Miners aren't going to just dish out coins, especially given their scarcity at that point. Your logic doesn't convince me.

Imagine that in future, the transaction fee income for each block raised to 50 bitcoins, while the block reward almost decreased to zero, then every miner would become the early adopter: They can mine bitcoin exactly like early CPU miners at 50 coins per block, and if they want to accumulate coins, after 4 years they would have accumulated 50% of the total coin supply!

Technically, that scenario is not unrealistic: Given average transaction size of about 0.5 bitcoin and a transaction fee of 0.005 bitcoin (1%) is tolerable, you only need to process 10000 such transaction in each block to collect 50 bitcoins in fee, which can be filled within a 4-8 MB block, still manageable even at today's technology

This means, we can bring back the good old days of 50 bitcoins per block already in a couple of halvings!

The benefit? The miners will always redistribute the coins in bitcoin ecosystem to constantly rebalance the wealth distribution, so that centralization of wealth is prevented. At the same time, mining is a risky business, miners have to constantly striving for more efficiency to stay profitable, thus any kind of wealth concentration around miners are only temporary. They also need more incentives to keep investing in mining infrastructure

There is another even bigger benefit: This solved the biggest concern/doubt about bitcoin being a ponzi / pump and dump scheme that early adopters are riding the wave and trying to profit from the late adopters. In fact, if the block reward is 50 bitcoins or even 100 bitcoins in future, late adopters can mine more bitcoins than early adopters, thus make the whole system very long term sustainable and attractive for any participants from future