npub1aw…nyrgs on Nostr: As for wealth redistribution to miners. There is, say, currently 19,000,000 bitcoin ...
As for wealth redistribution to miners. There is, say, currently 19,000,000 bitcoin in existence. There are, say, 1,000,000 people that have used bitcoin to store the value they created; you create a car, you sell the car for $30,000, you store that wealth in bitcoin. 10 minutes later, there's 19,000,006 bitcoin, there isn't a corresponding increase in people storing their wealth in bitcoin, there isn't an increase in total value of bitcoin, we have just divided off a little morsel of bitcoins value and handed it to whoever mined the block.
Yes, the miner provided a service, for which they should be entitled the transaction fees of the peoeple who sent bitcoin in that block. But they shouldn't be entitled to my wealth, my value, when I have not made a transaction. They haven't facilitated some financial service for me, I don't owe them anything, yet they have taken a sliver of my wealth through inflation, the block reward (mining subsidy).
I'm not mad at miners or anything, my point is just that this is a redistribution of wealth, it is a subsidy that holders pay for on a service that should be paid for by people making transactions. Its just, the least shitty way of initially allocating all the bitcoin into the economy, and helps prevent a 51% attack until the network grows to support mining through fees.
Yes, the miner provided a service, for which they should be entitled the transaction fees of the peoeple who sent bitcoin in that block. But they shouldn't be entitled to my wealth, my value, when I have not made a transaction. They haven't facilitated some financial service for me, I don't owe them anything, yet they have taken a sliver of my wealth through inflation, the block reward (mining subsidy).
I'm not mad at miners or anything, my point is just that this is a redistribution of wealth, it is a subsidy that holders pay for on a service that should be paid for by people making transactions. Its just, the least shitty way of initially allocating all the bitcoin into the economy, and helps prevent a 51% attack until the network grows to support mining through fees.