Post
Topic
Board Economics
Re: BTC Security Broken?
by
pooya87
on 10/07/2024, 06:02:35 UTC
"BTC's longterm security depends on people paying extremely high TX fees which won't happen in a free market."
This is basically the new "bitcoin is bad for the environment" FUD that started a while ago to also justify the ongoing spam attack against Bitcoin that is known as Ordinals.

The flaw in this types of argument is that they forget the price.
You see, miners don't pay their bills in bitcoin, they pay it in fiat. So if they earn 1BTC they pay the same electric bill in fiat (eg. $100) than if they earn 1.2BTC with fees. That means if bitcoin is worth $120 they are already making a profit ($20) and if they earn 1.2BTC they make a bigger profit ($44). In other words they don't need that extra income generated by the fees.

So far the price has been on the rise in the long run (in each halving cycle) and you can't find anybody who would argue that the rise is going to stop here and never go up.
Keep in mind that this is for the near future, like next 10 years. Anything beyond that (like speculating on year 2140 where there is no more coins left to mine) is silly because it is impossible to know how the cryptocurrency and cryptography scene is going to be beyond next 10-20 years let alone talk about 100 years from now!

Bottom line is that high fees is a problem that needs to be fixed specially when it is caused by a spam attack like Ordinals that is exploiting the protocol and is abusing the bitcoin blockchain.