Nic Carter
Jul 24, 2017 · 1 min read

What I meant there (and failed to articulate properly) was that we haven’t seen bitcoin in a low-block reward environment where fees start to account for the majority of miner revenue. Will they still have the same incentives to secure the network? It’s only two years until the next halvening.

There are a lot of unknowns. Will the value increase sufficiently (and keep increasing) to offset the miner losses when the next halving occurs? Absent serious fees, which everyone seems to dislike, this will need to happen. The high fees caused a lot of grief recently and I suspect the market will only accept a fee-dominant miner model if the fees are amortized under a lot of 2nd layer transactions.

    Nic Carter

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    Partner, Castle Island Ventures. Cofounder, Coinmetrics.io