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50 sats \ 1 reply \ @evanbaer 9h \ on: JPEGS or no JPEGS... Bitcoin dies without Fee Pressure. THAT is the Truth bitcoin
Bitcoin does not necessarily require fee pressure to scale as the block subsidy winds down.
Instead, there may need to be a new buyer of hashrate.
Today, you can think of individual bitcoin transactions as the default hashrate buyer and where the TX fees are a proxy for hashrate purchases. This is today's default hashrate buyer.
Other buyers exist.
For example, many folks buy spot hashrate on markets like NiceHash and Rigly to lottery mine.
These buyers buy at the spot premium (often 10%+ over FPPS hashprice) and offer a preview of how the network could be supported as the block subsidy goes down.
Maybe mining-as-lottery paying a spot premium hashprice will come to support the network, much like state lotteries help fund education.
We will see.
In my opinion it's not about scaling... it's about survival.
Today's 'default hashrate buyer' is the block subsidy. But like I wrote it won't be that way forever.
So why would anyone mine, except for reward? Either from subsidy or from transaction fees? Eventually nation states could and would mine and they might mine at a loss... but assuming that they would want and need to... there would likely be plenty of demand for blockspace anyway so the subsidy might not matter that much.
Bitcoin is what we make of it. The network is how people use it, and what they use it for. It's a 'use it or lose it' network and it's strengthened based on the speech and values of those who utilize it.
Mr Shinobi had a great post on this last year
https://bitcoinmagazine.com/takes/bitcoin-use-it-or-lose-it
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