Bitcoin's miner reward mannequin raises considerations, says economist

George Mason College economics professor Lawrence White expressed considerations in regards to the altering miner reward mannequin for throughout a dialogue with David Lin revealed on Sunday. He prompt that as Bitcoin manufacturing slows down, miners’ rewards will more and more rely upon transaction charges, doubtlessly resulting in safety dangers attributable to inadequate incentives.

At current, miners are primarily incentivized by the era of recent Bitcoins. Nevertheless, in a future situation 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, based on 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 function as a future foreign money, White indicated that different cryptocurrencies is perhaps higher positioned to satisfy this function.

On the time of their dialog on Sunday, Bitcoin was buying and selling at $29,906.

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