Zcash Founder Challenges Bitcoins 21 Million Cap, Sparking Controversy in Crypto Community
Autor: Mining Provider Editorial Staff
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Kategorie: News
Zusammenfassung: Eli Ben-Sasson, Zcash's founder, questions Bitcoin's 21 million coin cap due to lost keys reducing supply and suggests a 4% annual issuance limit, sparking debate among supporters. This discussion raises concerns about Bitcoin’s future security as transaction fees may not suffice post-2140 when mining rewards cease.
Zcash Founder Questions Bitcoin's 21 Million Coin Cap
Eli Ben-Sasson, CEO of StarkWare and founding scientist of the privacy cryptocurrency Zcash, has recently challenged the widely accepted 21 million coin cap of Bitcoin. He argues that lost private keys continuously reduce the usable supply of Bitcoin, suggesting instead an annual issuance limit of 4%. This proposal was met with immediate rejection from many Bitcoin supporters who view the fixed supply as a core promise of the network.
“The limitation of Bitcoin's supply to 21 million makes no sense. In fact, over time, all keys will be lost. I therefore support a clear monetary policy with an absolute cap on the number of Bitcoins in the future,” said Ben-Sasson.
Ben-Sasson's concerns are backed by data from Chainalysis, which estimated that between 2.78 million and 3.79 million BTC were already irretrievable as of 2017. This figure includes coins believed to be lost, including those belonging to Bitcoin's creator, Satoshi Nakamoto. Additionally, ongoing court cases regarding dormant Bitcoin wallets valued at $235 billion further highlight the issue of lost coins.
In response to Ben-Sasson's critique, Zcash founder Zooko Wilcox proposed maintaining the 21 million cap while introducing a mechanism for voluntary coin destruction, which would allow holders to burn their coins, thus generating rewards for miners. This approach aims to address concerns about miner compensation after the last Bitcoin rewards are issued in 2140.
Market Reactions and Future Implications
As of now, approximately 95.5% of all Bitcoin has already been mined, raising concerns about transaction fees reminiscent of 2019 levels, which could impact the security budget of Bitcoin. Ben-Sasson argues that a limited inflation model would be more beneficial than a strict supply cap, while Zcash's mechanism involves burning 60% of transaction fees, equating to about 210 ZEC per year, which he believes is insufficient to adequately compensate miners.
Both sides present valid examples; for instance, Monero has opted for a different approach by maintaining a small block reward of 0.6 XMR indefinitely. However, Bitcoin developers have repeatedly rejected similar proposals, emphasizing the importance of stability in the network.
Sean Bowe, a key figure behind significant Zcash improvements, is working on a proof under Tachyon to ensure that no hidden errors can create new coins in the new Ironwood pool. Meanwhile, Bitcoin advocates remain unconvinced, reiterating Michael Saylor's argument that the network benefits from not allowing changes.
While the likelihood of implementing Ben-Sasson's proposal appears slim, it raises fundamental questions about Bitcoin's future: Can transaction fees alone secure the network once the last rewards are gone?
| Market Data | Value | Change |
|---|---|---|
| DAX | 24,897.45 | -567.80 (-2.23%) |
| Euro Stoxx 50 | 6,204.91 | -114.95 (-1.82%) |
| Dow Jones 30 | 52,220.35 | -704.80 (-1.33%) |
| Gold | 4,048.80 | -108.60 (-2.61%) |
| EUR/USD | 1.1404 | -0.0005 (-0.05%) |
| Bitcoin EUR | 54,238.03 | -1,741.58 (-3.11%) |
In summary, the debate surrounding Bitcoin's supply cap continues to evolve, with significant implications for its future security and market dynamics. The discussions led by figures like Eli Ben-Sasson and Zooko Wilcox highlight the complexities of cryptocurrency economics and the challenges of adapting to a changing landscape.
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