I may be being thick here but as miners get a piece of bitcoin for transaction fees, how do they not end up accruing all circulating bitcoin? Is it not it like erosion? Eventually even a rock turns to dust, rust will eat metal etc.
Miners sell the Bitcoins they earn in order to make a profit from their work. Sure they might keep some to themselves, but just like any other product of labor it is sold for fiat currency. The same as gold miners don’t keep all of the gold they mine.
Well if fiat currency does come to an end, miners will have to pay for their costs with something. In this case that something will be Bitcoin. I still don’t see a scenario where all of the Bitcoins will end up in the hands of miners.
Also more and more miners will probably come on board if this were the case making the currency even more decentralized.
Thanks for the answer but…
I’m hoping banks go down and paper money ends. To me that’s the endgame going on here. So if that were to happen, then what? We might argue they would still spend some on goods and services, but isn’t that what the elite rich do now? It doesn’t really impact on their wealth. I wonder if the answer lies in micro-mining via smartphones etc. which shares the accruing and spending across the average man. I won’t harp on about this. I hold Bitcoin, partly thanks to you guys. But something keeps nagging at me. I’ve learnt one thing… the exchange costs, constant verifications, duff wallet design, bank issues and transaction times are doing none of us any favours:)