What happens to Bitcoin after all 21M coins are mined? Since miners will be paid only for the transactions, wouldn’t that raise transaction costs?
That’s completely possible, as the block rewards disappear. That means transaction fees will take a more prominent role. But that day won’t be here for over 100 years I believe, due to how the halving process works. And we’re assuming everything with how miners are rewarded and how much they’re rewarded stays the same, and that user adoption and number of transactions stays the same too. But we know neither of those things will happen. The Bitcoin ecosystem will evolve and with it so will miner incentives.
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thanks. I just wonder if the incentive will be enough for the miners given the increase in difficulty of mining.