

2/3rds of all Bitcoins that will ever be, have been mined today - ubersync
https://blockchain.info/charts/total-bitcoins

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ubersync
For the uninitiated: There will be about 21 million bitcoins ever. Today
almost 14 million have been mined.

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compcoin
The Bitcoin system analogy is like a closed silo of wheat. All wheat (fiat
currency ) is blown to the top of the silo where the value is stored until it
is needed to be converted back into fiat currency again.

At the bottom on a equal basis Bitcoin purchasers and miners go to the market
when they desire convert back into fiat currency to pay required taxes and or
expenses that can only be done in fiat currency. The volatility in price is a
added incentive for those using Bitcoin as a payment system to convert back to
Fiat currency thus reducing the stored value.

Miners contribution (processing power and electricity) occur outside the silo
(this is there basis of claim and conversion to fiat currency to pay the
operating bills).

The miners do not increase the amount of wheat (fiat currency ) in the silo
system. Bitcoins by there simple function produce no new income or growth
either inside or outside the silo that increases the stored value of wheat
(capital) in the silo.

So any distribution to miners reduces the amount of wheat (stored capital ) by
almost 40% which is dilutive to those who paid full price to buy Bitcoin.

Tommorow if the market price of Bitcoin increase more wheat is added to silo.
This is just borrowing against the future stored value.

If enough Bitcoin is exchanged for the stored value in the silo (fiat
currency) then the market price will drop to reflect this inequality.

Mining bitcoin is a dilutive to the value paid by those who buy Bitcoin in the
free market by those who receive coins for mining. lets do some simple math
based upon today statistics. Todays volume 6297.55 x Avg price 247.6 =
$1,559,273.38 minus (3,800 coins mined x 247.6 = 618,393.38) 98.1958666466.
This means if you bought Bitcoin today your value has been diluted by more
than 39%. So each Bitcoin has only $149.40 in fiat currency available today.

So Bitcoin 2.0 applications that grow capital is the only long term solution
to this problem.

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SCAQTony
Question, what happens to the ledger (Blockchain) if the miners (accountants)
no longer get paid for mining Bitcoin? (Asked with respect)

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erikpukinskis
Transaction fees.

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kolev
Won't this deincentivize Bitcoin commerce significantly though?

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wmf
Yes, unless off-chain systems are developed.

It's also possible that transaction fees will stay low and miners will just
stop mining.

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kolev
The off-chain systems are a workaround. And I doubt they will be cost-free.

