Author: Tom Harding 2015-05-08 04:46:48
Published on: 2015-05-08T04:46:48+00:00
In an email conversation on May 7, 2015, Jorge Timón and an unknown participant discussed the potential impact of the next block reward halving on bitcoin miners. The unknown participant noted that without meaningful fees and a 2x increase in the USD:BTC ratio, many miners will have to leave the network, which would increase centralization risks. They also mentioned that the power that miners use is not going to pay for itself, ignoring capital and other operating costs.Jorge Timón interpreted this as an argument for increasing fee competition and against increasing the block size. However, the unknown participant disagreed and argued that if average fees per transaction decrease with block size, total fees per block could reach an optimum somewhere. It's unclear where the optimum would be, but it's not at zero, and it's not necessarily at a block size lower than 1MB.
Updated on: 2023-06-09T19:41:31.660032+00:00