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Blockchain

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Question:

Easley, O’Hara, and Basu (2019) show that transaction fees increase whenever the (coinbase) reward for mining a block goes down.

Author: timothy Ntambala



Answer:

False. Easley, O’Hara and Basu find that transaction fees increase in case of queuing problems, not by reduction in coinbase rewards. This is because transaction fees get you priority to be on a block, so this price goes up when there’s a larger que.


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