Never forget that Bitcoin transactions are one of the most expensive and with the highest energy consumption in the world because the electricity consumption of each Bitcoin transaction is thousands of times more than a regular visa card transaction. Unfortunately, the annual power consumption of miners exceeds 50 terawatts per hour.
Suppose a new currency was introduced and sold to the people by a financial institution who announced that users can buy and sell it safely and limitlessly. This financial institution will not receive any payments such as a commission nor fee from users who can trade this money anonymously, easily and free of charge. Meanwhile, using special technology, the reliability of the accuracy of each transaction is 100%. There is neither mistake nor misconduct nor corruption in this financial institution.
Their only condition is to print new currency at least an annual equivalent of $ 3 billion, in addition to the available amount and to sell to the public to cover its costs.
The condition of the financial institution ensures that it receives $ 3 billion annually, and will no longer need to receive any other payment, like the transaction fees. That’s exactly why it can always provide its services for free. Meanwhile, let’s not forget that the injection of new money definitely have inflation effects and indirectly all holder of this currency will be paying this cost. In other words, $ 3 billion annually will be reduced from the value of this currency in hand of holders to cover the costs of this financial institution.
Bitcoin’s decentralized network works just like the financial institution of the above example, makes the new Bitcoins in the form of Bitcoin mining, and immediately gives new Bitcoins to the winner miners. Of course, the transaction fees cover only five percent of the cost of the miners and whether or not it has little impact. So, it should not be surprised at the low transaction fee of Bitcoin transactions or considered it as an advantage of Bitcoin.
