@smalltimer
you have points but you're not considering demand,
which is half the supply+demand equation... which
affects price now...
...and you're not considering the increasing transaction
volume which will decrease the fee size later.
cheers.
transaction volumes are too low - half of it is fake and me sending coins to exchanges and back or playing satoshi dice.
Demand is the problem:
demand will not grow because it can't hold its value that's the gist of my point actually
-> If it would hold value better and favour miners less the demand would be higher and the hash maybe a little lower, so the price would be rising (and ultimately with it the hash too)
Raw hash is expense and doesn't provide any value in itself. What provides value is a fine balance between investors and miners which bitcoin has been unable to strike.
Price will come down and hash too until an equilibrium between miners and investors is reached (supply/demand equilibrium). So the inflation it has now
does not provide any additional security, it just makes sure the coin doesn't take off.
The theory of the inflation being necessary to secure the network is total bogus.
What secures the network is a
sustainable high price and high demand whilest inflation should be minimal. After all you want to get money into the system not out of the system.
What do you mean by "fake" transactions how can a transaction be faked?
