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Title: Miners - Transaction Executions? Post by: successquik on November 19, 2013, 06:53:30 AM Hello all:
I think I've got a pretty firm handle on Bitcoin. But the one thing that I am a little fuzzy on is the miners.... It is my understanding that miners are basically processing the bitcoin transactions around the world..... What happens as transactions massively increase with world wide acceptance and the total bitcoins outstanding begin to reach the ultimate limit of 21million.... How will bitcoin transactions be processed? What happens when the 21million is reached, who will process these transactions? Thanks in advance for helping me understand what is probably a simple answer for all you long term Bitcoin Gurus herein! :) SQ Title: Re: Miners - Transaction Executions? Post by: DeathAndTaxes on November 19, 2013, 06:57:29 AM Miners are paid by both transaction fees AND the block subsidy. The block subsidy slowly declines, it is cut in half roughly every 4 years, but won't reach zero for over another hundred years. As the block subsidy declines tx fees will become more and more important.
Mining will never end even when the block subsidy is zero. Without mining there will be no new blocks and as a result no tx will be confirmed. Mining will continue forever. If you are still around in a hundred and thirty years you will be mining for tx fees only. Title: Re: Miners - Transaction Executions? Post by: successquik on November 19, 2013, 07:05:47 AM Thanks D&T.....
I am not smart enough to be a miner, LOL. I was looking at it from the standpoint of the functionality of the system long term and what was there, incentives wise, to sustain the processing of the transactions. 'preciate it. SQ |