Crypto Expert Warns: Bitcoins Security Model May Lead to Collapse in 10 Years

Crypto Expert Warns: "Bitcoin Could Collapse in 10 Years"

A crypto fund manager has raised alarms about a fundamental issue with Bitcoin (BTC), stating that the network's security is not sustainable in the long term and could completely collapse within seven to ten years. The warning comes from Justin Bons, a fund manager at Cyber Capital, who attributes this potential downfall to a downward spiral triggered by the so-called "halvings."

Every four years, a "halving" occurs, which halves the amount of Bitcoin miners receive as a reward. This continuous reduction in income poses a serious problem, according to Bons. Bitcoin mining is crucial for the network's security, as the significant energy consumption by miners acts as a protective barrier. To successfully attack the network, an adversary would need to control more than 50% of the total computational power, which would also require bearing over half of the global energy costs. However, due to the extremely high energy demands, this scenario is economically unfeasible in practice.

"The security model of Bitcoin is not sustainable in the long run," warns Bons.

Bons elaborates on the downward spiral, indicating that if miners continue to earn less due to regular halvings, many will be forced to cease operations. As more halvings occur, fewer miners will remain, further diminishing the network's security. At this point, the system becomes vulnerable.

While there are potential solutions, Bons argues that none are truly viable. One option would be for the price of Bitcoin to double every four years to offset declining mining revenues, but he considers this unrealistic in the long term. Another possibility is a significant increase in transaction fees, which would need to rise astronomically to compensate for the losses incurred from halvings. A more controversial suggestion involves altering the code to increase the maximum number of Bitcoins beyond the current limit of 21 million, but Bons believes the resistance within the community against such a change is too strong.

In conclusion, Bons predicts that based on the upcoming halvings, Bitcoin is likely to collapse within the next seven to ten years. His warning is clear and concerning for the future of the cryptocurrency.

Key Takeaways:

• Bitcoin's security model is deemed unsustainable by expert Justin Bons.
• Regular halvings reduce miner income, threatening network security.
• Potential solutions to the issue are considered unrealistic or controversial.

Source: MEXC

Sources:

• Krypto-Experte warnt: „Bitcoin könnte in 10 Jahren kollabieren“