Maybe it’s my simple brain but I can’t wrap my head around …
Maybe it’s my simple brain but I can’t wrap my head around why the “halving” means excitement. It shouldn’t have any affect on price. The total supply is still the same. I can still buy it on exchanges. It just means mining is less profitable right?🤷🏻♂️
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And then if mining is less profitable halving after halving after halving isn’t there a point where people would have to pay (for power) to mine with no reward?? Who’s going to want to do that. So people turn off their miners and then what happens...
Does the network... *gulp* ... stop???
The halving means 1/2 the amount of bitcoin subsidy per block reward, so there is 1/2 the amount of ‘new’ bitcoin available every 10 mins on avg. The miners and market have to adjust the price the new coin is sold at to stay profitable.
You have to think in terms of the amount of coin available - supply & demand, per block reward. Also transaction fees are meant to replace the block subsidy, so ideally the # of txs and fees should rise to make up the difference.
But that means unless transaction frequency goes way up fees go up. And then people will question if they want to use this network or not. I see the logic. Hopefully there are plenty of transactions to balance fees.I wonder how it will actually play out 🤔
The whole reason we big blockers have been fighting to remove the blocksize cap has been specifically to increase the # of transactions per block and thus the total fees earned per block to make up for the halving. Bitcoin must scale or die.
It isn’t the # of transactions alone - it’s the fees per byte, so applications are required that create more reasons to transact, such as storage and computation which apps like Twetch prove works on BSV.