Post
Topic
Board Bitcoin Discussion
Re: Analysis and list of top big blocks shills (XT #REKT ignorers)
by
Bergmann_Christoph
on 11/01/2016, 21:24:45 UTC
There is no reason why bitcoin can't be the all in one package we all want it to be someday but right now there is not enough demand to support the network with low fees.
We should only raise the block size in minuscule increments to keep fees high enough to support a robust mining community.

I like your point.

Except that right now the network should not be supported by fees but by the block reward.




Your missing my point completely transaction fees + block rewards are more or less = to the amount of money reinvested in hardware to mine bitcoins. As the block rewards drop in these massive chunks every 4 years so dose the amount we as a network spend on security. Let me be clear Block rewards account for the majority of this and with each halving day we lose more or less 50% of our network security. The fees the network gathers today are virtually worthless some miners don't even bother processing transactions because its not worth their time.  

Was the network more secure in 2012 when block reward was 50 btc?

The network is growing, and with the network the price growth and with the price the reward growth. At the end of the second reward era with 25 BItcoin, every miner will earn in dollar about 40x as much as at the beginning in early 2013.

Mining is a zero-sum-game. Miners will never get enough.

I understand that the halving will have a negative effect on mining, since everyone mines at margin profit and when the reward drops, it will drive people out of mining. But at the moment, there is no chance that the fee will balance this out. We'll have to face it.

Edit: And I like your point that

Quote
right now there is not enough demand to support the network with low fees.

and

Quote
We should only raise the block size in minuscule

Both I think is true - which is no reason for me to have another oppinion on fee policy etc.