Economic implications of big block Bitcoin – CoinGeek

BSV cannot be friends forever with other blockchains that use SHA-256 hashing algorithms. The reason is that there exists only so many ASIC mining machines that require a high amount of capital investment and upkeep chasing a fixed subsidy of coins across three blockchains.

Block 733,689 was mined on the Bitcoin SV network with 2,512,670 transactions, netting 9.75 BSV coins in transaction fees alone in addition to the 6.25 subsidy.

Given that fact, in this example if BTC or BCH miners had deployed some machines to mine BSV they could have potentially earned 150% more revenue for nearly the same amount of work and cost.

Such market anomalies do not manifest often, but when they do, they do not last because they are quickly taken advantage of.

When that does become a factor, the innovation and investment into high-powered ASICs starts making less sense moving forward, especially as the subsidies halve.

As the fee income starts to offset and replace the subsidy, miners will need less hash rate and more hard drives, servers, and transaction processing capability.

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