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User Info Bitscam And Other Extraordinary Insanities; entered at 2017-12-06 14:23:08
Posts: 150725
Registered: 2007-06-26
BTC lifers will say that transaction fees will cover the gap,

Who's going to pay the fees and via what mechanism? Bitcoin is designed so the miners do it as an embedded cost of operation. Well, when there are no more miners either because (1) the energy cost exceeds the value of the coin or (2) you run out of coins (the sequence ends) THEN WHAT?

SOMEONE has to perform that function or there is no verification and as such all Bitcoin becomes worthless instantly (since I can trivially counterfeit one without verification being both robust and distributed.) Worse, "robust and distributed" (on which verification relies) means there have to be multiple SOMEONES, and the more transactions that must be verified to reach the root of a coin the more expensive that gets. There's no mechanism for that to be done at a rational profit built into the system.

Some of the other coin designs have built in "checkpoints" to try to reduce this issue but it's not that simple. If you checkpoint and assume everything is valid to the checkpoint to try to reduce the computational reduction cost to verify a transaction then you've created an intentional point of attack for someone who wants to corrupt the chain. God help you if they succeed, and since you created a focused point of attack there's suddenly a huge benefit to trying that didn't exist before (in other words I don't just corrupt one coin at a time and its subdivisions, I corrupt EVERYTHING to the checkpoint, beyond it, or worse, BOTH!)
2017-12-06 14:23:08