So what happeneds when the fee market exceeds the block reward as is clearly going to be the case with BSV
I don't know. None of us do, because hell will have frozen over long before then.
Its obvious the transaction fee market will clearly exceed the block reward with time.
How is that "obvious"? Lets take a look at the facts:
Avg. Transaction Fee 0.0000038 BSV ($0.0011)
Transactions avg. per hour 21,087, or 3,515 per block
Reward Per Block 12.50+0.0158 BSV ($3,695.91 USD)
Fee in Reward (Average Fee Percentage in Total Block Reward) 0.15%
At its current price, the average number of transactions would have to increase by 666.67x in order for their fees to equal the block reward. That's assuming that transaction fees doesn't increase proportional to the price of BSV. That would mean 2.343 million transactions per block. Since BSV has an average tx size of 0.48kb, that would mean each block would have to be 1.124 GB. We're talking about a 570-fold increase from where things currently stand. That just ain't happening. Not in our lifetimes.
Feel free to bet on BSV's blockchain growing by 162 GB a day if you want (4.8 terabytes a month) -- that does not sound like "scaling" to me. It sounds like a pipe dream.
What's far more likely to happen is BSV will buckle under the weight of Craig's ego and it will implode into obscure shitcoindom where it belongs.