Post
Topic
Board Bitcoin Discussion
Re: if the number of transactions doesn't pick up by 8/16 miners will have to quit
by
franky1
on 17/03/2014, 04:41:55 UTC
The block reward is scheduled to be halved on around august 2016.
when that happens unless the amount of transactions fees rises to compensate for the reward drop,
mining will become unprofitable and the hash rate will drop rapidly.
what can be done to prevent this  Huh

yawn.. we had these kind of arguments before the last halving.. and its not even 2016 yet so why worry about it 2 years beforehand..

this is like worrying about who is going to diaper change your baby, before you have even met a girl to impregnate. seriously enjoy the 'ride' and the many month of fun for now and youll se the future will sort it self out all by itself.

transaction fee's are now and in 2 years time small fry and shouldnt be the main 'wage earner' the idea of bitcoins is to be as cheap to transact as possible. so a transaction fee rise is out of the question.

but here are three options to settle your mind.
1) in 2016 the bitcoin price would naturally rise to an amount that will make the reward value per block, a value that miners can make a living out of.EG miners wont want to sell for less. so they will hoard and create more demand, raising the price.
2) some miners will realise instead of wasting $$$$ on electricity for EG: 0.25btc a day. they will start selling products and services at a retail price of 1BTC with a 25% markup. (giving them 0.25 profit) or selling 100  items for 0.01btc with 0.0025 profit (again totalling 0.25btc profit).. you get my point
3) those that cant afford to keep up with difficulty rises over the next 2 years. wil  die off, giving more of a share to those that stay. thus they get a bigger cut. thus they make more $$$$

there are many other options but, dont worry your lil head about it. its over 2 years away