George Mason College economics professor Lawrence White expressed considerations concerning the altering miner reward mannequin for throughout a dialogue with David Lin printed on Sunday. He recommended that as Bitcoin manufacturing slows down, miners’ rewards will more and more rely upon transaction charges, probably resulting in safety dangers brought on by inadequate incentives.
At current, miners are primarily incentivized by the era of recent Bitcoins. Nonetheless, in a future state of affairs the place Bitcoin manufacturing ceases, the rewards would solely consist of those transaction charges. This shift might pose vital challenges to the safety of Bitcoin transactions, in response to White.
Regardless of these potential dangers, White underscored Bitcoin’s strong safety historical past. He emphasised that the cryptocurrency has confirmed to be hack-proof up to now.
Whereas expressing skepticism about Bitcoin’s position as a future foreign money, White indicated that different cryptocurrencies may be higher positioned to meet this position.
On the time of their dialog on Sunday, Bitcoin was buying and selling at $29,906.
This text was generated with the assist of AI and reviewed by an editor. For extra info see our T&C.
