Post
Topic
Board Bitcoin Discussion
Re: DEAR SATOSHI, did you WANT an UNSTABLE coin, or why the harsh 4-YEAR HALVINGS?
by
QuestionAuthority
on 26/11/2018, 05:56:14 UTC
Dear Satoshi, did you want an unstable coin, or why the harsh 4-year halvings?

Bitcoin's 4-year coinbase halving schedule arguably hurts stability - an important feature of good money.

The halving of the inflation rate drives prices up strongly, causing a fomo wave, but when the hash rate catches up, prices fall back down in a destructive crash.

Why not use a 0.0000033% per-block reduction of the block-reward (to achieve the same halving in 4 years, but smoothly)?

This should support a smoother price increase curve, and therefore also help grow new userbase, now unsure when to enter the market and when to hold, and prevent the industry-wide destructive crashing waves of huge price falls.


You don’t have long to worry OP. With the next reward drop (and certainly with the one after) the mining reward will be inconsequential. Mining, at that point, will be almost entirely supported by transaction fees.

The days of the individuals mining and fighting with each other over the reward will be long gone. The new face of mining will be large bitcoin businesses that need to keep bitcoin alive and transactions happening smoothly. Eventually, even large mining farms will fail or be forced to drive up transaction fees to maintain a profit above equipment costs. The much anticipated reward drop will pass every four years without anyone noticing.