Re: how will the Bitcoin security hold up as miners' rewards decrease
- What is the most likely outcome if the Bitcoin security budget does decrease? How do you envision Bitcoin’s long-term security holding up as mining rewards decline? What alternative incentive models could keep miners engaged? Increase in transaction fees? New use cases that drive transactions? Layer 2 solutions or sidechains?
You have to know that Bitcoin miners' rewards have to sources: Bitcoin block subsidy, and Bitcoin transaction fee.- Only thing we are sure is, Bitcoin block subsidy will become less with time, after every 210,000 blocks or about every 4 years.
- Bitcoin transaction fee, in average, for future Bitcoin blocks can be higher or smaller than now.
It's purely about rewards of Bitcoin miners in BTC, but is mining profitable for Bitcoin miners or not, it will depend on their input cost and output revenue that depends on Bitcoin price in future too.
- Controlled supply
- Equivalent network time
- To mine same 1 BTC, Bitcoin miners will have to spend more inputs in future because of Bitcoin block subsidy halvings, and more competitiveness among Bitcoin mining pools and Bitcoin miners.
