Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Tim Swanson thinks transactions cost 25 BTC divided by the number of transactions in a block. That's a complete misunderstanding of not just what the block reward does but of what Bitcoin even is. He has gathered some interesting data, but his analysis is unlikely to be of much use as he has no fundamental understanding of Bitcoin in the first place.
Right now, that entity gets 25 BTC (~6000 USD) for each validated block, and the average block contains 750 transactions. So the miners are being paid ~8 USD for each transaction that they process, on average.
In percentage terms, the transactions in a block move about 280'000 USD, on average (excluding presumed "return change" outputs); so the miners' revenue is about 2% of the money that they move.
There is not much room for misunderstanding there. Right now, the bitcoin network is way too expensive for the service that it renders.
...
This inspired me to produce a historical chart of "miners' revenue as a percentage of the money they move." Not unexpectedly, this percentage is decreasing as the number of transactions per day increases.
Does this mean that the network becomes more cost-effective to operate as it grows?
