[Retric]

No, the 22+$ transaction fees are the problem. People are saying that it's no longer a currency because of them, but that just makes it a security. IMO it's currency or scam not currency or security, because there is no inherent value beyond currency.

[sumedh]

So its a scam because there are transaction fees?

[Retric]

It's become a scam because of the incentive structure. The miners control the currency and are trying to maximize the money they extract not grow the usage of Bitcoin.

[sumedh]

Why would the miners mine Bitcoin in the first place if there was no incentive?

Once the mining stops, they make money by transaction fees.

Do you expect people to work for free?

[Retric]

I don't expect people in multi level marketing aka pyramid scheme to work for free either. But, their are plenty of incentive structures with good and bad rewards. One option for a hypothetical digital currency is to stagger payments so a miner gets say 1/2 of their reward in 10 years.

I am only saying the current structure ends up as a scam, not that the eventual successful currency can't solve these problems.

[sumedh]

> One option for a hypothetical digital currency is to stagger payments so a miner gets say 1/2 of their reward in 10 years.

Who pays for the electricity costs till then?

I dont think you understand the meaning of the word scam, the miners are not cheating anyone with some false promise nor are they getting commissions if they bring other people under their fold like a pyramid scheme

The incentives are needed for miners to start mining in the first place, if you dont like it you are free to start your own currency.