@theswansjr Strong point but gold didn’t just “fail,” it was actively integrated into credit systems and then abstracted away.
Bitcoin may be harder to capture, but if most activity moves off-chain or through custodians, doesn’t a similar form of centralization risk reappear?
@theswansjr At that scale, fees could absolutely sustain miners — agreed.
But the key variable isn’t just price, it’s demand for block space.
Security in the long run = fee revenue, and fee revenue = real usage.
That’s what my model focuses on.
@theswansjr So the open question isn’t “does it work today?” — it’s whether fee revenue alone can sustain miner incentives at scale. That’s still unproven.
@theswansjr I do own some, but that’s not the point.
From what I’ve studied: so far, price growth and hardware efficiency have offset declining rewards — which is why hash rate kept rising.
But long term, block rewards trend to zero, so security has to come from transaction fees.
@theswansjr Not worried, just curious about how the incentive model evolves.
Ownership isn’t really relevant — the question applies to anyone analyzing Bitcoin’s long-term security.
@theswansjr It’s not about stopping — it’s about rates. Rewards fall exponentially,
hardware improves incrementally,
price growth isn’t guaranteed to match both forever. At some point, fees have to carry the system — that’s the real question.
@theswansjr Because both assumptions have limits:
Hardware efficiency doesn’t improve infinitely, and price can’t grow exponentially forever.
Eventually, miner incentives have to come from fees — not just price appreciation.
@theswansjr So far, no �� because price growth and better hardware compensated for lower rewards.
But that doesn’t answer the long-term question: Can fees alone secure the network when rewards fade?
@Rajatsoni Bitcoin’s design actually assumes the opposite: over time, it transitions from block rewards to transaction fees — not to zero incentives.
So it won’t become a “lottery,” it will remain an incentive-driven system.
@Rajatsoni I don’t think Bitcoin can rely on “no profit motive.” Mining isn’t voluntary work — it requires real costs (electricity + hardware).
If profits disappear, miners will simply shut down, hash rate will drop, and network security weakens.
"I am trying to awake the energy contained in the air. These are the main sources of energy. What is considered as empty space is just a manifestation of matter that is not awakened." – Nikola Tesla
Photo: Tesla in his workshop in Colorado Springs, CO, 1899