Elvis Nuno on Nostr: What are people’s prediction on what will happen to the bitcoin miners network once ...
What are people’s prediction on what will happen to the bitcoin miners network once all bitcoins are mined?
Obviously, in the original whitepaper, the assumption is that by that time the bitcoin network will be sustainable enough that mining will be profitable purely by the volume of transactions the network will be processing.
But at that point mining profitability will no longer be able to be calculated in any predictable way based on the value of each blocks newly minted coins.
Instead, the profitability of the global mining network will likely end up fluctuating (potentially very dramatically) based upon how everything from individual, to institutional, to governments transact in bitcoin, along with activity of L2’s, on-chain reconciliation of lightning network activity and liqudity… and from the development of new applications that generate on-chain activity.
And what will the increasing influx of government and institutional #HODL “reserve funds” have as a huge volume of coins are consolidated into increasingly fewer wallets?
The end result of how all of this will effect the mining network (and #BTC as a whole) is a big question mark, as it’s unlikely to match the relatively predictable life-cycle of the network shedding old miners in favor of newer, more efficient, faster miners that occurs with each halving.
Obviously, in the original whitepaper, the assumption is that by that time the bitcoin network will be sustainable enough that mining will be profitable purely by the volume of transactions the network will be processing.
But at that point mining profitability will no longer be able to be calculated in any predictable way based on the value of each blocks newly minted coins.
Instead, the profitability of the global mining network will likely end up fluctuating (potentially very dramatically) based upon how everything from individual, to institutional, to governments transact in bitcoin, along with activity of L2’s, on-chain reconciliation of lightning network activity and liqudity… and from the development of new applications that generate on-chain activity.
And what will the increasing influx of government and institutional #HODL “reserve funds” have as a huge volume of coins are consolidated into increasingly fewer wallets?
The end result of how all of this will effect the mining network (and #BTC as a whole) is a big question mark, as it’s unlikely to match the relatively predictable life-cycle of the network shedding old miners in favor of newer, more efficient, faster miners that occurs with each halving.