Bitcoin beyond 21 millon BTC has been mined.

[sgdias]

What will be the scenario for Bitcoin once almost the 21 millon BTC has been mined ?

Will be profit there for miners processing transactions and just getting the fees ? Let's asume a worst case scenario in which majority of people does not give a fee (my understanding is that fee is optional).

If miners stop processing the transactions because is not profitable will Bitcoin fail

Thanks,

Santiago.

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[btc4ever]

Watch IFC.   It will be effectively mined out soon.

[Nancarrow]

It's an equilibrium - lower transaction fees means fewer miners which means lower difficulty which means increased transaction fees (or more correctly, a bigger slice of the pie for every miner who keeps mining) which means more miners which means higher difficulty which ... [etc]

[sgdias]

It's an equilibrium - lower transaction fees means fewer miners which means lower difficulty which means increased transaction fees (or more correctly, a bigger slice of the pie for every miner who keeps mining) which means more miners which means higher difficulty which ... [etc]

In "control theory" there will be an equilibrium only if the system has a negative feedback, if it's positive there won't be equilibrium.

Are we sure Bitcoin's enconomy system loop is a negative feedback ?

Thanks.

[ajax3592]

(my understanding is that fee is optional).

Fee is not optional, we cannot make a transaction without paying some fee.

[sgdias]

Watch IFC.   It will be effectively mined out soon.

What is IFC ?

[Nancarrow]

In "control theory" there will be an equilibrium only if the system has a negative feedback, if it's positive there won't be equilibrium.

Are we sure Bitcoin's enconomy system loop is a negative feedback ?

Thanks.

Well I just outlined one negative feedback loop, but of course there are probably several feedback loops in several variables. Some will be negative, some will be positive. One classic positive feedback loop we all know and 'love', is stock or commodity (or Bitcoin!) prices skyrocketing because everyone hears how great they are because they're going up, so they buy some which makes the price go up more, so they become more desirable, etc. Of course *that* feedback loop can work in the other direction too!

I suppose if you want to do a systems theory approach to ask whether Bitcoin is going to succeed or fail you'd have to identify ALL the relevant variables and feedback loops. I dare say some peeps in academic finance are probably doing this as we type... now that I think of it my uni tutor was a financial mathematician. Wonder what he's up to these days.

 

[BitchicksHusband]

Watch IFC.   It will be effectively mined out soon.

What is IFC ?

Probably an alt-coin.

[Qbeczeq]

Watch IFC.   It will be effectively mined out soon.

What is IFC ?

Probably an alt-coin.

Specifically Infinitecoin
http://infinitecoin.wordpress.com/

[jones31]

(my understanding is that fee is optional).

Fee is not optional, we cannot make a transaction without paying some fee.

You're wrong on this one.
Each block has 27kb which are design for free transactions.
Also , the FBI didn't pay a single satoshi in transferring all the 140k bitcoins they collected.

[empoweoqwj]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

[jones31]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

a) Infitecoin
b) same as above , Infinitecoin , which given the name is quite Ironic

[empoweoqwj]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

a) Infitecoin
b) same as above , Infinitecoin , which given the name is quite Ironic

ROTFL

Infinitecoin will be mined out soon? You couldn't make this stuff up ... except someone did ;-)

[jones31]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

a) Infitecoin
b) same as above , Infinitecoin , which given the name is quite Ironic

ROTFL

Infinitecoin will be mined out soon? You couldn't make this stuff up ... except someone did ;-)

They claim that there will be 'Total about 90,600 millions coins (90+ billion coins)"
http://exploretheblocks.com:2750/chain/Infinitecoin shows:
88652104205 coins. with 16 per block , they will be soon scarcecoin

[empoweoqwj]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

a) Infitecoin
b) same as above , Infinitecoin , which given the name is quite Ironic

ROTFL

Infinitecoin will be mined out soon? You couldn't make this stuff up ... except someone did ;-)

They claim that there will be 'Total about 90,600 millions coins (90+ billion coins)"
http://exploretheblocks.com:2750/chain/Infinitecoin shows:
88652104205 coins. with 16 per block , they will be soon scarcecoin

There's one born every minute ...... stupid altcoin I mean ;-)

[jones31]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

a) Infitecoin
b) same as above , Infinitecoin , which given the name is quite Ironic

ROTFL

Infinitecoin will be mined out soon? You couldn't make this stuff up ... except someone did ;-)

They claim that there will be 'Total about 90,600 millions coins (90+ billion coins)"
http://exploretheblocks.com:2750/chain/Infinitecoin shows:
88652104205 coins. with 16 per block , they will be soon scarcecoin

There's one born every minute ...... stupid altcoin I mean ;-)

Let's not exaggerate , one every hour or so.
But check the alt section.
I dare you to make it out mentally sane after reading one hour in there.

[empoweoqwj]

Watch IFC.   It will be effectively mined out soon.

a) What is IFC
b) What is "effectively mined out soon" applying to? Bitcoin, IFC, something else?

a) Infitecoin
b) same as above , Infinitecoin , which given the name is quite Ironic

ROTFL

Infinitecoin will be mined out soon? You couldn't make this stuff up ... except someone did ;-)

They claim that there will be 'Total about 90,600 millions coins (90+ billion coins)"
http://exploretheblocks.com:2750/chain/Infinitecoin shows:
88652104205 coins. with 16 per block , they will be soon scarcecoin

There's one born every minute ...... stupid altcoin I mean ;-)

Let's not exaggerate , one every hour or so.
But check the alt section.
I dare you to make it out mentally sane after reading one hour in there.

You'll never drag me in there. Mixture of the seriously deluded and the .... seriously deluded.

[NUFCrichard]

Either bitcoin will be so heavily traded that the transaction fees will justify people mining, or transaction fees will rise, or people won't mine it and it will fade and die (assuming it is still around to fade and die!)