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jhuffman comments on General Bitcoin discussion thread (June 2011) - Less Wrong Discussion
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I do not think the transactions are free even now, it is just that they are spread out across the entire money supply rather than charged only to the participants in the transaction. The cost of the block are the 50 coins added to the money supply, which slightly decreases the value of every other coin.
In most contexts, that would be close enough to count as "free transactions".