Bitcoin Price Hits All-Time High of $19,786, Topping 2017 Record

Re:Bitcoin Price Hits All-Time High of $19,786, Topping 2017... by paulgb on Monday November 30, 2020 @02:12PM (#25257599)

> I didn't follow this though, what do you mean?

I should have worded it better, I just mean that if Bitcoin were to replace gold as the primary store of value, the price of Bitcoin would have to rise significantly to absorb the demand, since supply is inelastic. This in turn would increase the environmental externalities.

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Re:Bitcoin Price Hits All-Time High of $19,786, Topping 2017... by brian_cloutier on Monday November 30, 2020 @02:27PM (#25257804)

Thanks for clarifying. I'm not sure it would increase the environmental externalities.

Since transaction inclusion is a marketplace and since most products we care about will continue to be denominated in local currencies I don't think transaction fees will change much as the price of bitcoin changes.

As the dollar-denominated value of a 0.01btc fee increases people will become less willing to spend that 0.01btc. There might be some stickiness but I expect the kwh-denominated fees will grow much more slowly than the price of bitcoin.

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