Post
Topic
Board Bitcoin Discussion
Re: What will happen with Bitcoin if it never scales?
by
classicsucks
on 14/05/2017, 07:37:35 UTC


That will not work. The main reason that Bitcoin core does not want to increase the blocksize is that they want to force the "fee market" that is supposed to replace block rewards as the means of securing the Bitcoin network, while there is still enough of a block reward left to secure the Bitcoin network.


Having worked closely with the Monero adaptive blocksize, it has become very clear to me that without a minimum block reward the Cryptonote adaptive blocksize limit will cause the total fees per block to go to zero at the same rate as the block reward. This will lead to no incentive for the miners to secure the Monero network. By analyzing the Monero adaptive blocksize and fee structure one can see why "solutions" such as Bitcoin unlimited will fail, since these type of solutions are in effect a much weaker version of what Monero already has. In the Bitcoin unlimited model for example net fees to the miner will fall to zero much faster than with a Cryptonote style quadratic penalty

Edit 1: Litecoin and Dash have fundamentally the same flaw as Bitcoin. In the case of Dash the situation is made even worse since the falling block reward not only has to support the miners but also the masternode network and project funding.

Wait a minute - the main reason that Bitcoin core does not want to increase the blocksize is to force people onto Segwit and over to LN and their other patented solutions. They've stated this publically.  Also, why would bitcoin Core care about fees? Miners will secure the network for meager fees.

Your claims about money supply are interesting. Is it possible that your views about current inflationary economics cause you to regard such systems as normal and stable?