Post
Topic
Board Bitcoin Discussion
Re: Mining for fee only is unsustainable.
by
omri
on 06/06/2011, 07:26:54 UTC

The community would have reacted MUCH better to this kind of post, pointing out that there's no inherent competition between miners for transactions:  A transaction can be worked on by multiple miners at once, and as a miner, lowering your transaction fee doesn't bring you any benefit:  It doesn't "bring you more customers" than other miners, and it doesn't make the block easier to solve.  Instead, we saw someone with very little understanding of the bitcoin system approaching us with an arrogant, flippant attitude (either intentionally or unintentionally).  The same kind of reaction happens in mathematics, a well known one being the problem of trisecting the angle, the millenium problems, or perpetual motion.  Many people who are introduced to the problem automatically assume they have a clever way of circumventing it, not realizing that for thousands of years people who are very likely much smarter than them have worked tirelessly on these problems, and it'll take a bit more effort on their part to make any true progress (if any progress at all is possible).

  There is price competition.
  Supposed there are two groups of miners, one with more CPU power that requires higher fee and one with less, but not negligible, CPU power that will accept a lower fee. While the first group will win most of the fees that are high enough for them to accept, the smaller group is guaranteed to eventually collect all the fees from transactions the bigger group reject, as these will wait for them to generate a block. That way the smaller group will get it's fair share of the higher fees plus all of the lower fees reject by the bigger group, thus earning more relative to the work done.