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RE: "Bitcoin can't scale"

in LeoFinancelast year

Having trouble understanding this question.
Miners want bigger blocks.
Bigger blocks have more fees.
They make more money.

Bitcoin can easily negate the problem of dwindling inflation by simply doubling the block size every four years as inflation is cut in half. According to Moore's law, they could easily double the blocksize every year and should have very few problems. If we quadruple the block size and this cuts fees in half, the miners are raking in double the fees.

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I guess I'm not really thinking it through to where there is a significant enough increase in fees per block to make mining happy.

I'm a little bit less gung ho about the future of Bitcoin than the Maxi crowd I work with because right now I'm looking at the disaster which is leveraged hardware mining and thinking if miners can't make money on Bitcoin (and miners are the ONLY part of Bitcoin which the core protocol rewards) then where is the money to keep it going?

To be fair, every maximalist is more gung ho about the future of Bitcoin compared to every non-maximalist. Yes, there is going to be a mining crisis. For some reason miners were scaling up while Bitcoin price plummeted 75%. The market should have been retracting when it was expanding, and that's pretty weird and deserves some more attention. But all that needs to happen is that half of all miners go bankrupt and lose all their collateral, and then suddenly mining becomes profitable again. It's a self-correcting system that is currently out of balance and will soon balance itself.

I've seen blocks that have 1 BTC in trading fees alone.

If 1 BTC = $1,000,000 that's a million dollars a block... which is much more than block are worth today ($100k inflation reward + fees <$15k). Of course at a withdrawal fee of 0.0005 that's a $500 transaction fee from exchanges like Binance. Still much lower peer to peer. Bitcoin will have to increase the block size long before this happens if they don't want to smother themselves.

then where is the money to keep it going?

The money to keep it going is found when mining rewards double when hash rate gets cut in half (or less).

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Looking at the graph, we should actually be around 50 exohashes and find ourselves over 200.

Some people are even claiming government is taking over and mining at a loss to squeeze out the real players. I think it's more likely that the factories that produce mining equipment are set up in such a way that the output it constant and there isn't any sensible way to set up a business model that can be elastic enough to move with demand. It is certainly worth investigation.

I can only imagine the wailing and gnashing of teeth on "crypto twitter" (as if that's a place) when begin again the block wars must.