Author: Peter 2022-07-12 03:56:03
Published on: 2022-07-12T03:56:03+00:00
The Bitcoin emission curve requires a 2x value increase per 210,000 blocks for maintaining the existing security level. Transactions become irreversible when the miners' expenditure is greater than the transaction value. Bitcoin's final steady state is to eliminate fiat and be a global reserve currency and a daily transactional currency. To achieve this, engineering for other language and religious communities to join in is necessary. Businesses turn profits on average of 10%, which will fuel an increase in hoarding, making it difficult to expect a steady value of Bitcoin. Lightning network transactions can onboard the entire adult population in 38 years if we assume 20% of people use non-custodial Lightning. In a zero block reward world, chasing fees has a cost and risk of chain reorganization. There are national security considerations to prevent naive miner centralization models. Block rewards served mainly as a distribution method during the Bitcoin immaculate conception period of 2009 to 2012, and they offer little security these days. Mining may transition to a public service from the current for-profit business model when there's a 38-year backlog and every nation is on board for the game theoretic reason to deny any single nation the power of seigniorage of the global reserve currency.
Updated on: 2023-06-15T22:46:38.903404+00:00