<p>Or a combination of both. It looks like things like the Lightning Network will be there for micro payments and smaller amounts so that only larger transactions will be directly on the blockchain. For larger (and aggregate) transactions a bit more fee shouldn't be a problem (a). Also at some point the block size will likely be raised allowing for more transactions per block as well (b).</p>

<p>Either way your title is wrong: there is no post-mining world.</p>

CC BY-SA 3.0
2015-10-04T21:19:30.657Z
I thought the process is called mining, only when new bitcoins are being generated. But you seem to be saying, that transaction processing alone is also mining.
Martin Vegter
CC BY-SA 3.0
2015-10-05T00:24:09.150Z
As far as i know everyone calls it mining regardless, wouldn't know what else to call it, certainly not just "validating" as everyone does that, not just miners. Also technically you could say that the coins that come out of the fees are still "fresh coins" as there is no regular transaction that send them to a miners address. Technically the fees are simply lost in transactions (in - out > 0) and then the miner is allowed to create fresh coins up to the total amount (or less). Also he still has to wait 100 blocks before he can spend them.
Jannes
CC BY-SA 3.0
2015-10-04T19:46:38.030Z
2015-10-04T19:46:38.030Z
Jannes
<p>Today, the bitcoin network is secured by massive computing power, which is expended in the process of mining. The miners are rewarded by newly mined bitcoins, plus transactions fees.</p>

<p>The security of the network relies on the computing power being so expensive, that no one group can afford to gain 51% share.</p>

<p>Eventually, the amount of newly mined bitcoins will diminish, and the mining  reward by itself would cause mining to become unprofitable. </p>

<p>Will the fees be able to pay the expenses for the huge expensive computing power?</p>

<p>I can see two extreme situations where it might work: </p>

<pre><code>a) either the transaction fees will be astronomical
b) or there will have to be huge amount of transactions
</code></pre>

<p>option a) is clearly not viable, which leaves option b).</p>

<p>What would this mean for the bitcoin economy?</p>

<p>Will bitcoin need to become "high-velocity" money?
How could that be enforced? And how would we prevent the blockchain growing out of control?</p>

<p>Is my analysis correct?</p>

CC BY-SA 3.0
2015-11-07T11:41:53.353Z
possible duplicate of [Will Bitcoin suffer from a mining Tragedy of the Commons when mining fees drop to zero?](http://bitcoin.stackexchange.com/q/3111/5406), [How much will transaction fees eventually be?](http://bitcoin.stackexchange.com/q/876/5406), [Are there any studies into the size of the blockchain scaling over time?](http://bitcoin.stackexchange.com/q/2798/5406)
Murch
CC BY-SA 3.0
2015-11-07T11:49:59.137Z
Hey Martin, I changed the title, because it seemed to me that your question asks about whether "post mining" will actually occur, so I felt it was not the best description. I've also slightly edited a sentence, because it felt incomplete. Please feel free to further edit or revert any changes! :)
Murch
<transaction-fees><economic-theory><mining-theory><scalability><reward-schedule>
Can transactions scale sufficiently to compensate the diminishing block reward by fees?
Martin Vegter
# Can transactions scale sufficiently to compensate the diminishing block reward by fees?

(Asked by: username_0 on 2015-10-04)

Today, the bitcoin network is secured by massive computing power, which is expended in the process of mining. The miners are rewarded by newly mined bitcoins, plus transactions fees.

The security of the network relies on the computing power being so expensive, that no one group can afford to gain 51% share.

Eventually, the amount of newly mined bitcoins will diminish, and the mining reward by itself would cause mining to become unprofitable.

Will the fees be able to pay the expenses for the huge expensive computing power?

I can see two extreme situations where it might work:

```
a) either the transaction fees will be astronomical
b) or there will have to be huge amount of transactions

```

option a) is clearly not viable, which leaves option b).

What would this mean for the bitcoin economy?

Will bitcoin need to become "high-velocity" money?
How could that be enforced? And how would we prevent the blockchain growing out of control?

Is my analysis correct?

**Tags:** transaction-fees, economic-theory, mining-theory, scalability, reward-schedule

> **Comments:**
> **username_1**: possible duplicate of [Will Bitcoin suffer from a mining Tragedy of the Commons when mining fees drop to zero?](http://bitcoin.stackexchange.com/q/3111/5406), [How much will transaction fees eventually be?](http://bitcoin.stackexchange.com/q/876/5406), [Are there any studies into the size of the blockchain scaling over time?](http://bitcoin.stackexchange.com/q/2798/5406)  
> **username_1**: Hey username_0, I changed the title, because it seemed to me that your question asks about whether "post mining" will actually occur, so I felt it was not the best description. I've also slightly edited a sentence, because it felt incomplete. Please feel free to further edit or revert any changes! :)  

---

## 1 answers

### Answer by username_2 on 2015-10-04. Score: 1

Or a combination of both. It looks like things like the Lightning Network will be there for micro payments and smaller amounts so that only larger transactions will be directly on the blockchain. For larger (and aggregate) transactions a bit more fee shouldn't be a problem (a). Also at some point the block size will likely be raised allowing for more transactions per block as well (b).

Either way your title is wrong: there is no post-mining world.

> **Comments:**
> **username_0**: I thought the process is called mining, only when new bitcoins are being generated. But you seem to be saying, that transaction processing alone is also mining.  
> **username_2**: As far as i know everyone calls it mining regardless, wouldn't know what else to call it, certainly not just "validating" as everyone does that, not just miners. Also technically you could say that the coins that come out of the fees are still "fresh coins" as there is no regular transaction that send them to a miners address. Technically the fees are simply lost in transactions (in - out > 0) and then the miner is allowed to create fresh coins up to the total amount (or less). Also he still has to wait 100 blocks before he can spend them.  

---

