/biz/ - Business & Finance

>>28108200
the problem with cryptocurrencies is that they require constant work input in the form of electricity and hash power to stay secure/useable and someone has to pay for that work input, those who use the currency and ideally the cost should be spread out over as many users as possible to make the pain for individual parties as low as possible, preventing capital flight

this is best done through inflating the currency and having a small transaction fee
the freshly minted coins which the miners receive are dumped on the market to finance their operations and the security/useability of the network, this however causes downward pressure on the purchasing power on all who hold the crypto (and by holding it making use of its security) while the transaction fees adds another layer of mining funding from those who make further use of the network through transactions

Bitcoin is currently using this model of inflation and small transaction fees to fund mining operations but once it reaches its hard cap inflation will stop and all of a sudden all mining operation costs will have to come out of the pockets of those who transact, those who simply hold the coin, using its network as a place to store wealth, pay nothing (which is unfair)

problem is that Bitcoin can only handle 7 transactions per second which means the transaction fee will have to be astronomical to provide enough resources for miners to keep the network secure but with astronomical fees, who will transact? no one will transact/very few individuals
so miners will be forced to shut down, causing the hash rate to plummet and making the network susceptible to 51% attacks
as the network becomes more insecure capital will flee leading to a death spiral

>>27512082
these could be rockets lined up, ready to fire off into space if it weren't for these fucking crypto niggers and fiat jews