Incentive

We are introduced to the block subsidy and how coins are distributed in the system. This is the first place we see the analogy to mining mentioned. We are also introduced to Satoshi’s vision for how the system can be maintained when the block subsidy fades away and the 21 million bitcoins are distributed: the incentive will transition entirely to transaction fees and the system will be completely inflation free. Satoshi also discusses the incentives for nodes to remain honest. He posits that it is more profitable for nodes to be honest and generate new coins instead of attacking the system.