This article explores the threats to Bitcoin's security and the potential solutions being discussed in the crypto community.
Criticism and Concerns About Bitcoin's Security
Some critics argue that as block rewards decrease due to halvings, and if transaction fee revenue does not grow, there will be insufficient incentives for miners to secure the network. Ethereum Foundation researcher Justin Drake previously noted that if fees do not increase, the network may be forced to raise the Bitcoin supply. In response, many Bitcoin supporters view proposed changes, such as altering the 21 million limit or transitioning to proof-of-stake, as completely unacceptable.
Historical Reward Scheme for Miners
Initially, the block reward was 50 BTC at the network's launch, and it has now decreased to 3.125 BTC per block. Despite the overall decline in Bitcoin-denominated rewards, its value in US dollar terms has increased due to Bitcoin price appreciation. However, eventually, the reward in the form of newly created coins will be tied to transaction fees, leading to complete inflation-free status.
Possible Solutions for Ensuring Bitcoin's Security
There are various ideas on how to solve Bitcoin's future issues, including the introduction of high fees at the network level and the possibility of modifying the fee collection mechanism. Some experts propose that attracting users through high fees could create financial stability for the network. However, this opinion is not universally held, and there are differing views on how to ensure Bitcoin's necessary security in the long term.
As of now, the future of Bitcoin's security remains ambiguous and requires further research and discussions within the crypto community.
