Hi
I was thinking about the blockchain and trying to re-evaluate how much I understand about how BTC works.
Bitcoin block rewards will not last forever, and mining is only profitable in rare cases. This means that when the block reward dissapears forever, mining will likely be profitable for nobody, and nobody will give hashing power to the blockchain because the miners fee only will not be enough to cover running costs.
To add to the problem, the miners fee is about to drop, and will never be ridiculously high (enough to solely cover miners expenses) because that in itself would kill Bitcoin. People wouldn't be willing to pay $5.00 to transfer $0.05 of Bitcoin, would they?
Thoughts?
I was thinking about the blockchain and trying to re-evaluate how much I understand about how BTC works.
Bitcoin block rewards will not last forever, and mining is only profitable in rare cases. This means that when the block reward dissapears forever, mining will likely be profitable for nobody, and nobody will give hashing power to the blockchain because the miners fee only will not be enough to cover running costs.
To add to the problem, the miners fee is about to drop, and will never be ridiculously high (enough to solely cover miners expenses) because that in itself would kill Bitcoin. People wouldn't be willing to pay $5.00 to transfer $0.05 of Bitcoin, would they?
Thoughts?
Some miners in different parts of the world would be able to make a profit. For example in China and India, electricity is practically free, and most miners would be able to turn a profit. On other parts of the world, not much can be said.
Currently, there are 2 types of rewards that miners receive, block rewards and mining fees. The block rewards will slowly become less, due to the ever decreasing amount of available blocks to be mined. So the only alternative that can be done, are to increase the mining fees, and that will most likely be really bad for the everyday users of bitcoin.
Well, I guess we will have to cross that bridge when we get to it.
