Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
billyjoeallen
on 06/10/2015, 22:14:31 UTC


Miners revenues are mandatory to ensure the network's security.

While the block reward tends to 0, it is natural for a fee market to emerge, or else there would not be any incentives left for the miners to keep spending the resources that a POW system requires.

Meanwhile, you can enjoy transacting for nearly nothing.

It is possible to have too much security.  Would you hire an army to guard a child's piggy bank? The compensation for miners should be proportional to the security they actually provide.  It costs almost a million dollars/day to secure a network with a 3-4 Billion dollar market cap.  How much do you think the New York Fed spends guarding their gold vaults under 33 Liberty ST. ? I would be very surprised if it was anywhere close to 1 million/day.  

If miners can provide 90% as much security for 10% of the current cost/transaction, that is a increase in value to network users.  If they keep stonewalling any blocksize increase, they risk losing market share to competing altcoins.  

I'm not selling my BTC, but i'm not reinvesting my arbitrage profits either. I'm using them to buy bitshares.

If small blockers were truly committed to decentralization, they wouldn't be limiting Bitcoin's utility.  A settlement network between trusted third parties is absolutely not what Satoshi or any of us early adopters had in mind.  It's supposed to be a peer-to-peer electronic cash system. It always was.