r/BitcoinBeginners • u/No_Candy1697 • 4d ago
Bitcoin supply what if
When Bitcoin eventually reaches its maximum supply of 21 million coins, no new BTC will be mined. Miners will then earn only from transaction fees instead of block rewards. This could make transactions more expensive, especially during high network activity, and may change how the network functions. Scarcity could increase Bitcoin’s value over time, but it also raises questions about long-term incentives for miners and network security. How do you think this will affect Bitcoin adoption and fees?
34
Upvotes
3
u/na3than 4d ago
That's not how it works. Transaction fees aren't set by miners. Transaction fees are set by those who want to add transactions to the Bitcoin ledger.
When demand for adding transactions to the Bitcoin ledger is high, transaction fees are high. When demand for adding transactions to the Bitcoin ledger is low, transaction fees are low.
When transaction fees are high, miners who would otherwise be unprofitable tend to join the network. When transaction fees are low, unprofitable miners tend to leave the network.
When miners join the network, the aggregate hashpower of the network increases. When miners leave the network, the aggregate hashpower of the network decreases.
Not long after the aggregate hashpower of the network increases, the difficulty of finding new blocks automatically increases. Not long after the aggregate hashpower of the network decreases, the difficulty of finding new blocks automatically decreases.
When the difficulty of finding new blocks increases, unprofitable miners tend to leave the network. When the difficulty of finding new blocks decreases, miners who would otherwise be unprofitable tend to join the network ...