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After 21 million bitcoins miners will be paid certain transaction fees but I need your guidance for clarifying following confusions:-

  • Currently solving a block gives you 25 bitcoins but what is the reward level after 21 millions bitcoins?

  • I understand we still need sufficient amount of verifying computing power to secure the network even after 21 million bitcoins but do you think people would invest in powerful machine just to process transaction where the reward level is lower then the power consumption?

  • What if bitcoin community decided to mine for other alternatives such as litecoin, dogecoin for greater rewards, don't you think it'll effect the value of bitcoins?

  • Do we still have power competition to process transaction?

Thank you

marked as duplicate by Dr.Haribo, Mathias711, Dennis Kriechel, Nick ODell, Murch Sep 30 '14 at 11:40

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    This question makes no sense to me, as the need is always the same: We mine because we need to have a sufficient amount of verifying computing power to secure the network against attackers. This need doesn't change just because the block reward is discontinued. – Murch Sep 28 '14 at 21:32
  • Murch I have edited my question, you can have a look again, Thanks. – Ray.Rai Sep 30 '14 at 2:39
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If this happens, you are likely talking of the years following 2140. If bitcoin survives, it is very possible that bitcoin will be worth millions of dollars. If so, then perhaps single little satoshis will be worth cents or perhaps what we perceive of as dollars. Especially if bitcoin is used to supercede as the most common method to use currency. However america would have to lose a lot of value and do something mighty stupid to lose its number one slot as "the preferred method to hold and spend purchasing power"

  • This doesn't answer the question which was asking whether mining will continue after the block reward and how it will be incentivized. – Murch Sep 30 '14 at 8:59

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