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Showing 3 of 3 results by rand
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Board Beginners & Help
Re: What incentive is there to verify BTC transactions come 2140?
by
rand
on 18/04/2013, 01:58:58 UTC
transaction fees.

I suppose transaction fees could be assessed and awarded to miners by the same mechanism that currently awards new coins to miners.

But, how are transaction fees to be assessed on a decentralized network?  If someone is just emailing someone else a string of code in exchange for goods or services, who assesses the fee?
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Topic
Board Beginners & Help
Re: What incentive is there to verify BTC transactions come 2140?
by
rand
on 18/04/2013, 01:55:09 UTC
Also, I have heard of some people that apparently mine for the health of the currency instead of the boatloads of cash they get. I know, they are strange and horrible people.

I appreciate altruism but do not believe it is something to rely on.
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Board Beginners & Help
Topic OP
What incentive is there to verify BTC transactions come 2140?
by
rand
on 18/04/2013, 01:47:14 UTC
BTC works as a decentralized digital currency because people all over the world verify transactions in exchange for being awarded new bitcoins.  This is known as mining.

Bitcoin creation is capped at 21million bitcoins.  What I do not understand is, why would anyone dedicate computing power to verifying transactions if they will not be awarded bitcoins in exchange for doing so?

It seems to me that once the creation process of bitcoin has ended that the network will cease to function in a way that has currently made it so appealing.

Am I missing something here?  I am excited about bitcoin but less so if it will cease to be useful in a little over 100 years.