How does the bitcoin security tied on miners reward, this is not so, even after the entire bitcoin has been mined, miners will solely depend on the amount charged on transaction fees which I even see it's more better by then for them than now, whereby they may not have to mine bitcoin again and still make their earnings upon every block confirmation reward.
My take was that if transaction fees are too small (now they comprise only around 1% of miners’ revenue) and there is no more block reward (by 2140 or so), the miners will not be motivated enough (in terms of money) to validate the blocks. In this case, the network security will decrease alongside the amount of miners. So, I opened up the discussion to talk about possible outcomes for the network if this happens.
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BoardBitcoin Discussion
Re: how will the Bitcoin security hold up as miners' rewards decrease
I also wonder when the final halving technically occurs. How is it programmed? Is there a hard stop, or does it stop when the reward is less than two satoshi and no more halving is possible?
yep each halving is just 1 bit less of the reward which the translates binary to decimal to a number you can recognise the very last halving is where the final 1bit becomes 0
.. i understand your a newbie so i wont rip apart your other errors i found in your article, but enjoy learning about bitcoin. there is much to learn
And after 1 bit becomes 0 is the network programmed to stop 'dividing/cutting' it or will it forever divide 0 by 2 (only to get 0 again) every 210 000 blocks?
divide binary 0 by 2?? you have no clue .. there is nothing to divide.. you cant divide a single binary bit.. learn math and computer science and physics if a binary bit is 1 it "switches" to 0.. and so (in integer/human form..) zero block reward from the native supply. so that its just tx fee total that becomes the payment to miners
I do understand the binary math; probably, I haven't correctly expressed myself. The question was whether (1) the networks eternally continue trying to remove another bit and distribute zero reward or (2) it has some condition like "if after halving procedure block reward=0 then stop sending block reward and stop halving procedure"?
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BoardBitcoin Discussion
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?
I also wonder when the final halving technically occurs. How is it programmed? Is there a hard stop, or does it stop when the reward is less than two satoshi and no more halving is possible?
What does security budget means here I did not understand your point and what does Btc security holdings means in your opinion. This is just a pow network where users or miners cane earn money by transaction fee and block reward they can also earn money on holding those btc they earn. Earning alone is not that beneficial therefore mining in pool is advisable.
When all Btc will be mined there would be no block reward I assume and the reward for miners would be coming from transaction fee unless some new technology integrated into it. Till then tx fee is the only reward after 2140.
It is all clear. The question is how to attract miners when there is no block reward (or it becomes too small after several halvings) and the transaction fees are not high enough to engage them in mining so that they are in profit (currently they are relatively small).
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BoardBitcoin Discussion
Re: how will the Bitcoin security hold up as miners' rewards decrease
I also wonder when the final halving technically occurs. How is it programmed? Is there a hard stop, or does it stop when the reward is less than two satoshi and no more halving is possible?
yep each halving is just 1 bit less of the reward which the translates binary to decimal to a number you can recognise the very last halving is where the final 1bit becomes 0
.. i understand your a newbie so i wont rip apart your other errors i found in your article, but enjoy learning about bitcoin. there is much to learn
And after 1 bit becomes 0 is the network programmed to stop 'dividing/cutting' it or will it forever divide 0 by 2 (only to get 0 again) every 210 000 blocks?
Well, I sincerely appreciate your mercy, but I would be grateful if you could rip them apart so I do not make them again...
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Re: how will the Bitcoin security hold up as miners' rewards decrease
Hey! I've written an article on how low incentives to miners could leave the Bitcoin network without enough budget to secure transactions.
Try again when you have determined the minimum necessary block reward. Otherwise it's just FUD.
It depends on the price of the computing power, which is hard to predict in the long term. Besides, this number can vary significantly for different miners. I'm rather trying to imagine what could keep miners engaged if the rewards become too small.
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Topic OP
how will the Bitcoin security hold up as miners' rewards decrease
by
alex113115
on 19/02/2025, 07:43:15 UTC
Hey! I've written an article on how low incentives to miners could leave the Bitcoin network without enough budget to secure transactions. There is an opinion that transaction fees alone are insufficient to motivate miners. I’d appreciate an expert opinion and comments from the community. I'd specifically appreciate your comments on these points:
- 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?
I also wonder when the final halving technically occurs. How is it programmed? Is there a hard stop, or does it stop when the reward is less than two satoshi and no more halving is possible?
https://www.coindesk.com/policy/2022/11/04/eu-delays-vote-on-mica-crypto-legislation-until-february/ EU Delays Vote on MiCA Crypto Legislation Until February "Technical issues in the lengthy text could delay the start of the licensing regime set out in the Markets in Crypto Assets regulation. European Union lawmakers wont vote on the Markets in Crypto Assets regulation (MiCA) until February, likely meaning further delays in the landmark licensing regime for crypto companies within the bloc, a spokesperson for the European Parliament has told CoinDesk."
Re: Tether: USDT is the next token to crash / Tether fraud exposed
by
alex113115
on 07/12/2022, 09:58:04 UTC
Don't want to protect Tether, but your links do not expose any fraud of Tether or imply a possibility of crashing. Of course, Tether has issues, after all, it is a wild crypto product. Nevertheless, is has the potential to become something big, assuming the right management. First, this stablecoin has the highest transaction volume to market cap ratio - meaning it is used for daily transactions, and payments, including cross-border transfers. We have done some research on it here https://www.observers.com/zoom-in-on-stablecoins/ If people find it convenient, that is the best property for money. Money is a social construct. They work on transparency issues as well. They have issued an audited reserve report. https://www.observers.com/tether-new-attestation-of-reserves/ It is still not a full financial statement and the auditor is not from Big4. Further, the auditors are from the hometown of Tether CFO. But it is better than nothing.
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BoardPolitics & Society
Re: Power Or Money ?
by
alex113115
on 01/10/2022, 10:36:45 UTC
Money is materialized (crystalized) product of past power (labor, efforts, fraud, forceful action times the time).