Author: GC 2015-06-19 10:08:19
Published on: 2015-06-19T10:08:19+00:00
The timeframe for network congestion and users experiencing service degradation is between now and the middle of next year. The timeframe for transaction fees topping block reward fees is many years in the future, based on current ratio of block reward to fees. There is a need for a reliable payment network that scales without falling over in the next 2-3 years, rather than a working fee market. Increasing block-size is not a long-term solution as necessary higher fees are a logical consequence of lower subsidies. Bitcoin was free to use at the beginning because miners got paid with new coins at the expense of those who already hold coins. Eventually, there needs to be a mechanism which matches supply and demand. Some users will find their bitcoin savings have become uneconomic to spend if Bitcoin does not have sufficient capacity for everyone's transactions. These sorts of complaints will get more frequent and more extreme in the coming months.
Updated on: 2023-06-09T23:25:33.501301+00:00