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User Info Bitscam And Other Extraordinary Insanities; entered at 2017-12-07 06:36:18
Tickerguy
Posts: 150726
Registered: 2007-06-26
Quote:
At the point new coins aren't awarded anymore the fees will have to justify the cost of mining. If it doesn't less miners and the difficulty goes down until the cost to mine is less than the fees.

You seem to miss the point: (1) the "mining cost" has no relationship to the reward earned (the reward is the same) and (2) at "some point" either (a) the mining cost (power, hardware amort, etc) exceeds the reward's value OR the rewards run out entirely.

In either (2) case you're fooked because as things stand right now there's no infrastructure support for paying for verification, and the (likely terabytes) of blockchain that have to be maintained and verified make transaction costs ridiculously high if they become exposed (rather than part of the "mining job".) Worse, the more transactions (ever, not on a rate basis) the higher that cost goes. The STRUCTURE is a snake that ultimately eats its own tail.

There are other cryptos that have tried to address this, but IMHO none of them can or will do so successfully without some sort of centralization, which is the entire thing they're ALL trying to avoid!

Last modified: 2017-12-07 06:37:40 by tickerguy

2017-12-07 06:36:18