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jlight

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  1. To get a long term perspective on bitcoin read my blog https://www.finextra.com/blogposting/14734/is-bitcoin-a-store-of-value-or-a-payment-system In it I explain the spectrum of uses for bitcoin - a store-of-value system at one end and a high volume payment system at the other end. I explain how the bitcoin network is kept alive by the miners, and the bitcoin economics which ensure miners participate. However, bitcoin rewards for miners halve every 4 years, and I conclude that because of this, miners revenue in the long term has to come from transaction fees for them to continue, therefore bitcoin has to become a high volume transaction, or payment system to survive. Bitcoin has a transaction capacity limit, already reached - the inability of the Bitcoin community to solve this constraint must be a cause for concern.
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