Impact on Miners
- Shift to Transaction Fees: Miners will rely solely on transaction fees to maintain the network and verify transactions, as block rewards will cease to exist.
- Increased Fees: Transaction fees might rise to incentivize miners, potentially making Bitcoin more suitable for large transactions.
- Network Security: The security of the network might be affected if transaction fees are too low, potentially exposing it to attacks.
Impact on Bitcoin's Value
- Deflationary Asset: Bitcoin's limited supply and permanently lost coins will make it a deflationary asset, potentially driving up its value in the long term.
- Digital Gold Narrative: The end of mining will cement Bitcoin's position as a scarce digital asset, strengthening its "digital gold" narrative.
Network Operations
- Continued Operation: The Bitcoin network will continue to operate, with miners verifying transactions and adding them to the blockchain.
- Adaptation to New Economics: The network will adapt to the new economics of transaction fees, potentially leading to increased efficiency and security.
Potential Scenarios
- Optimistic Scenario: High demand and a large number of transactions could provide sufficient revenue for miners to protect the network.
- Pessimistic Scenario: Low fees and decreased computing power could make the network more vulnerable to attacks ¹ ².
