In a recent YouTube video published as part of the “We Are All Satoshi” series by renowned cryptocurrency enthusiast and Information Technology entrepreneur Rick Falkvinge, he discusses the important concept of cryptocurrency mining fees. More specifically, he discusses the lack of importance of the fees as they pertain to future mining operations.
Mining fees are halved every four years. When they were first introduced, miners were paid 50 Bitcoin (BTC) for each new block signature found; that number is now down to 12.5 BTC. Each time the fee is halved, questions start to arise about what will happen when the fee is reduced to almost zero. According to Falkvinge, it’s a subject not even worth mentioning.
Falkvinge rightfully points out that the mining fees won’t reach “virtual zero” until the year 2140 – 120 years from now – after 21 million BTC tokens are minted. Falkvinge coins a phrase from Donald Knuth, who wrote the very first book on computer science basics, who said, “premature optimization is the root of all evil.”
In other words, trying to solve a problem today that won’t exist for another 120 years is flawed and shows a lack of common sense. No one is able to predict what technology will exist in 2140 and how the world will have changed overall. It’s counterproductive to try and apply today’s technology to create a solution for a problem that won’t exist until much further into the future.
Falkvinge is the founder of Sweden’s Pirate Party, a political party established in 2005. The party, in part, focuses on issues surrounding file sharing, patents and copyrights. In 2006, after The Pirate Bay was raided by officials, Falkvinge mobilized the Pirate Party and conducted his Nothing new under the sun speech the following month. That speech helped the party triple in size.
In 2009, during the European Elections, the Pirate Party achieved 7.13% of the votes. The party achieved 25% of the votes by those under 30 years old – the largest segment in that age group by any of the parties. In 2011, Falkvinge stepped down as the party’s leader, handing the reigns over to Anna Troberg, who subsequently left at the end of her term on December 31, 2014.
Falkvinge still supports the Pirate Party, speaking at engagements on the party’s ideals and concepts. In 2011, he began exploring BTC and the effects it has on society’s economy. Since the hard fork of BCH last August, he changed gears, opting for the altcoin over BTC.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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