There is a lot of talk about Blockchain (and NOT Bitcoin), and about attaching deeds/proof of ownership to said Blockchain.
So a scenario, if for example a whole country or several countries agree to attach deeds to the blockchain, of say, properties in their country, what happens to the value of a Bitcoin, and why?
In my view the value is then attached to the Blockchain, and hence the value per Bitcoin (technically, excluding things like fundamental trading, news, hype etc) must go up proportionally to the amount of BTC in circulation, and the amount of value of said object/property described by the deed.
Do you agree with this?
Secondly, I would theorise that as deeds are attached, the value goes up per Bitcoin. Miners are incentivised at this stage to mine more as there is more return per Bitcoin. A side effect of this is that the network becomes more secure, as long as it stays decentralised.
So this works well while there is a reward for mining. What happens when the reward is trivial? I suppose then miners are rewarded purely by transaction fees. The value of a transaction would be established by the amount of competition in the mining market place. So I suppose there will be an equilibrium level where people are willing to pay a certain amount per transaction. If the transaction fee is too high, people will start transacting less, and miners will have to either put up their fees (resulting in even less transactions happening), or some people will have to get out of mining and the competition will lower slightly, and the price per transaction will reach an equilibrium.
It appears to be a push pull between people's....greed, for lack of a better word.
So far it works, and it works well. With mining reward going down, things will change and my question is, will it work? I think and hope so?
I am just jotting down random thoughts one leading to the other. Comments?
If the same thing was discussed in details I would appreciate a link to thread.
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