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BTC Longevity Question (self.bitcoin)

submitted 1 week ago by sic_semper_tyrannis to c/bitcoin@lemmy.world

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When BTC continues to half it will deincentivise people to mine it. Their rewards will drop as the price of electricity stays the same in that moment.

How will this affect BTC's usability? If less people are mining then does that mean there will be a traffic jam when people want to transact, thus significantly raising transaction fees and slowing the process? This will deincentivise people from wanting to use BTC.

At this point what else would people flock to to keep currency sovereignty?

BTC Lightning? Though this is dependent on BTC as a whole right?

Monero maybe? I don't know really anything on how that coin works.

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[–] mangaskahn@lemmy.world 4 points 1 week ago (1 children)

The block rewards were meant to incentivize mining until fees took over as the primary source of income. As block rewards drop, mining fees are expected to rise to fill in. Fees are already larger than block rewards, and mining is still going strong. The upward pressure from declining block rewards is countered by downward pressure from users wanting to pay the lowest fee possible. Competition for the fees stops miners from colluding to keep them artificially high.

[–] sic_semper_tyrannis 1 points 1 week ago

Gotcha. That makes sense. Thank you