Post
Topic
Board Economics
Re: Is Bitcoin viable?
by
exstasie
on 23/01/2021, 08:01:11 UTC
The miners get paid less and less as time goes on.

This is the wrong way to think about it.

Bitcoin is intended to be deflationary. At the outset (and still today) inflation is quite high. This inflation is bootstrapping the system by increasing the incentives for strong mining security.

High inflation is not the natural state of the system, long term.

The block reward should probably be expected to drop from here. At the same time, limited block size should facilitate increased fee income for miners over time because increasing adoption = increased demand for limited block space.

It's very possible that hash rate and block rewards eventually find relatively stable equilibrium ranges once the inflation rate significantly drops.