What happens to transaction speed/cost after all BTC is mined?

HeRetiK

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Quote from: dimifi on December 11, 2017, 05:26:24 PM

So u think that price of tx will only increase in time?

It could also mean a decline of network hashrate until a new equilibrium is reached.

Otherwise:

1) The cost of transaction fees in terms of BTC depends on how many people make on-chain transactions.

2) The cost of transaction fees in terms of fiat depends on 1) and the BTC / fiat exchange rate.

We have no control over 2) but we can work on 1) by moving a majority of transactions off-chain using 2nd layer solutions.

Quote from: pickledflu on January 09, 2018, 05:54:03 AM

The remaining Bitcoin would be moving around the market through transactions. This can change is if Bitcoin protocol changes and allows for a larger supply to be added.

Adding a larger supply would just lead to an alt coin hardfork, as it is unlikely that such a protocol change would get accepted as the canonical Bitcoin.

pickledflu

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The remaining Bitcoin would be moving around the market through transactions. This can change is if Bitcoin protocol changes and allows for a larger supply to be added.

SUDARMONO

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if all bitcoins are already mined for sure bitcoin prices will soar from current prices and certainly transaction costs will also follow in terms of rising bitcoin prices.

dimifi

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Quote from: DannyHamilton on December 11, 2017, 03:19:23 PM

Quote from: Crypto Piece on December 11, 2017, 02:52:14 PM

What happens when the last block is mined?

It is clear that you have a misunderstanding about how bitcoins works.

"Miners" (or mining pools) earn a block reward.

That block reward consists of the sum of the current block subsidy (new bitcoins created) PLUS all of the transaction fees of all the transactions in the block.

At the moment, the subsidy is 12.5 BTC and the sum of the transactions fees is less than that.

However, over time the subsidy will slowly decrease (it will be cut in half approximately every 4 years). And as bitcoin gains popularity the value of the sum of the transaction fees will likely increase.

Eventually at some point in the future, the value of the sum of the transaction fees will be higher than the subsidy. There will still be a subsidy, but since the majority of the revenue will come from transaction fees perhaps we will stop calling them "miners" and start calling them what they actually are, "transaction processors".

Then the subsidy will continue to shrink until somewhere around the year 2140 (more than 100 years from now). At that point it will shrink to 0 BTC and the entire cost of mining will be sustained through the transaction fees.

So u think that price of tx will only increase in time?

DannyHamilton

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Quote from: Crypto Piece on December 11, 2017, 02:52:14 PM

What happens when the last block is mined?

It is clear that you have a misunderstanding about how bitcoins works.

"Miners" (or mining pools) earn a block reward.

That block reward consists of the sum of the current block subsidy (new bitcoins created) PLUS all of the transaction fees of all the transactions in the block.

At the moment, the subsidy is 12.5 BTC and the sum of the transactions fees is less than that.

However, over time the subsidy will slowly decrease (it will be cut in half approximately every 4 years). And as bitcoin gains popularity the value of the sum of the transaction fees will likely increase.

Eventually at some point in the future, the value of the sum of the transaction fees will be higher than the subsidy. There will still be a subsidy, but since the majority of the revenue will come from transaction fees perhaps we will stop calling them "miners" and start calling them what they actually are, "transaction processors".

Then the subsidy will continue to shrink until somewhere around the year 2140 (more than 100 years from now). At that point it will shrink to 0 BTC and the entire cost of mining will be sustained through the transaction fees.

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Quote from: Crypto Piece on December 11, 2017, 02:52:14 PM

What happens when the last ~~block~~ is mined? Huh

Bitcoin not block.

Assuming there are no changes to the bitcoin protocol code.

Time between blocks (transaction time) stays the same.
Fees will be just as they are now dictated by the market, if people want to pay they will pay if not... not.

Also, please use the search button.
This kind of thread with the same questions pop-ups every day and it's getting annoying.

Crypto Piece

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What happens when the last block is mined? Huh

Topic: What happens to transaction speed/cost after all BTC is mined? (Read 155 times)