Coinspeak Technical and Fundamental Market Analysis
This chart presented by TAAL’s Jerry Chan at last week’s Coingeek conference sums up the investment thesis for Bitcoin SV. Full presentation here.
This chart represents the point when the BSV mining network is being sustained by transaction fees rather than by block rewards. Keep in mind, the block rewards in Bitcoin are programmed to decrease every four years. Sustaining the network with a massive volume of low fee transactions is crucial to the design of Bitcoin.
This moment when transaction fees exceed block rewards underpins the entire economic model of Bitcoin. If the network cannot be sustained by transaction fees it is doomed to fail. There can be two models for this: low transaction volume and high fees or high transaction volume and low fees. Which of those two models do you think has a future?
In a few decades when the reward gets too small, the transaction fee will become the main compensation for [mining] nodes. I’m sure that in 20 years there will either be very large transaction volume or no volume.
– Satoshi Nakamoto
There were several businesses at the Coingeek event that shared their views on running BSV as their global database due to scalability. Here’s one example:
Note the chart above indicates the crossover happening in Q1 2021 at roughly 75 million daily transactions. That’s ~100x the daily transactions on BSV today. Is this foreshadowing something we don’t know?
Right y axis Is not for txs but for tx fees.
Said that I think se are not talking about a 100x of txs.