NotLambchop
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November 21, 2014, 10:49:37 PM

Un-fucking readable

Are you upset because your buddies posted some idiotic pics, or because Bitcoin price is tanking?
Be honest now.

This whole cascade has started from a post where I have attempted to educate a Bitcoiner regarding the true cost of BTC transactions.  I'll repost it here for your consideration.

However , true story :



Let me explain what the difference is:
Money is sent via Western Union when cash is needed immediately.  This money is not sent for stuff like online purchases, otherwise the sender could simply make the purchase and have it shipped to a different address.

Sending Bitcoin is currently extremely cheap, because the miners are subsidised by 10% yearly inflation, AKA "block rewards" (not TX fees).  As block rewards diminish to zero over time, the miners will be forced to rely on TX fees.
Today, Bitcoin is paying 10% of its market cap to maintain the network--that's how many coins are mined in a year.  Once the block rewards approach zero, the transaction fees would have to represent ~10% of Bitcoin's market cap to maintain today's network security.  Because, as Satoshi has pointed out, the cost of mining should approach the price of coins mined.

Imagine that?  Burning 10% of world's wealth YEARLY being paid in TX fees?  

But that's a tangent.  The problem is, after receiving your bitcoin, it still must be converted to cash you can actually spend locally Undecided