Bitcoin

David Vance

Security

Lawrence White, a prominent American economics professor at George Mason University has hinted at some possible threats to the leading digital asset <a href="https://thecoinrise.com/what-is-bitcoin-demystifying-the-digital-currency-revolution/" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC). 
During an <a href="https://www.youtube.com/watch?v=37PiHtsyl6A" rel="noopener noreferrer nofollow">interview</a> with anchor and producer for Kitco News, David Lin, White showed concern for the long-term sustainability of Bitcoin security, especially in relation to the ever-changing reward model that is utilized for miners.
<h2 id="b-btc-is-proven-hack-proof-b">BTC is Proven Hack-Proof</h2>
The professor acknowledged that BTC has proven over time to be hack-proof, hence he has no worries that miners will collude to attack the top network, plus doing so would not be in their best interest.&nbsp;
Moving on from other netizens’ concerns which he considered trivial, White outlined a potential issue that may spring up in about 100 years from this time when more BTC may no <a href="https://thecoinrise.com/bitcoin-mining-difficulty-expected-to-soar-by-about-10-today/" rel="noopener noreferrer nofollow">longer be created through mining</a> and miners’ reward will consist of transaction fees. Many people seem to be skeptical that having the entire reward of miners consist of transaction fees may not be sufficient to get enough miners to keep the system secured.
<h2 id="b-miners-to-depend-solely-on-transaction-fees-b-span-style-font-weight-400-span">Miners to Depend Solely on Transaction Fees&nbsp;</h2>
At present, transaction fees only play a secondary role in the incentives offered to miners. Instead, the primary incentive for miners is the reward of newly created Bitcoin. This means that the current block reward is a fusion of both newly minted BTC and transaction fees.&nbsp;
The time when miners would have to solely depend on transaction fees as their primary source of reward is when Bitcoin mining processes progress to eventual completion and the rate of token creation decreases.&nbsp;
<h2 id="b-will-bitcoin-serve-as-money-b">Will Bitcoin Serve as Money?</h2>
Professor White’s concerns may sound remote and speculative to many crypto enthusiasts but it is also worth noting that Bitcoin maxists have a <a href="https://thecoinrise.com/binance-ceo-says-bitcoin-leaves-a-digital-trail-and-is-traceable/" rel="noopener noreferrer nofollow">history of tackling security concerns on the BTC network</a> and implementing improvements. In addition, there have been speculations that the digital asset will serve as money in the near future. On his part, the educator highlighted that the possibility of Bitcoin serving as money is minimal.&nbsp;
To explain his stance further, White acknowledged that “Other cryptocurrencies with a different design that gives them a more stable purchasing power could possibly play a wider role, and of course,&nbsp;stablecoins&nbsp;have grown to play a pretty substantial role.”
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/economics-professor-sees-potential-threat-to-bitcoin-security/">Economics Professor Sees Potential Threat to Bitcoin Security</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Economics Professor Sees Potential Threat to Bitcoin Security

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