https://twitter.com/MorganTBennett/status/1482411627655933953?s=20 What do you think about this thread? If block rewards keeps reducing without the compensation in fees, what is the incentive for miners to be in the network and How would it be profitable? ETH generates 55x more revenue than BTC on any given day. BTC simply isn't used much to generate that fees. BTC maxis never want to address this
ETH folks have been saying this for awhile, like ETH researcher Justin Drake. Bitcoin will likely need to fork to make more than 21 million BTC to help compensate miners, or… maybe they’ll need to redirect some activity from L2 to L1, and increase blocksize. This is why Ethereum has minimal viable issuance as monetary policy.
That fork wouldn't be called Bitcoin.
The Bitcoin devs had initially intended for transfer fees (paid by sender) to slowly take the place of reducing mining rewards as a way to create an incentive for the miners. Not sure about the current roadmap though
Yup. Satoshi called for gradual increase in blocksize as technology improved and costs went down. Lightning Network was never part of Satoshi’s original plan, which screws the security economics of the chain.
Mining follows the price of Bitcoin, even if the number of Bitcoins given from fees goes down, the value that those fees represent will go up. In an ideal world, it takes exactly 1$ of mining energy to produce 1$ worth of Bitcoin, because if it's 0.99 then your incentive is to mine instead of buying, vice versa.
That is assuming BTC will forever keep exponentially rising. As market cap gets higher, it gets very hard to even double the price in a short span . Of course there is leverage trading, which pumps the price, but there is tremendous downside as well
Yep, as long as the price is above 0, that dynamic will hold. If the price is 0, then the network security doesn't matter since it would have failed. The mining secures the tip of the chain, rewriting lots of blocks would require exponentially more energy and it would be impossible past checkpointed heights. If you plot the mining hash against the price, you'll see the correlation.