“Economics professor unveils potential vulnerability in Bitcoin’s security, shedding light on a future threat that could impact the digital currency’s stability.”
Lawrence White, a prominent professor of economics at George Mason University, has raised concerns about the long-term security of Bitcoin. In an interview with David Lin, White discussed the evolving reward model for miners and its potential impact on the sustainability of Bitcoin’s security.
While quantum computing has been a topic of concern in the cryptocurrency world, White believes that Bitcoin is currently hack-proof. However, he pointed out a potential issue that may arise nearly a century from now when no more Bitcoin will be created through mining. At that point, the entire reward for miners will consist of transaction fees, and there are concerns that this might not be enough to incentivize enough miners to keep the system secure.
Currently, the primary incentive for miners is the reward of newly created Bitcoin, with transaction fees playing a secondary role. But as Bitcoin mining progresses and the rate of new Bitcoin creation decreases, miners will increasingly rely on transaction fees as their primary source of income.
While White’s concerns may seem remote and speculative, Bitcoin’s core community has a history of addressing security concerns and implementing improvements.
White also commented on the possibility of Bitcoin serving as money. He believes the chances of Bitcoin becoming the world’s money are minimal, but he sees potential for other cryptocurrencies with different designs that provide more stable purchasing power. He also noted the substantial role that stablecoins have played in the cryptocurrency market.
In the meantime, Bitcoin continues its upward trajectory, aiming to reach the $30,000 mark. At the time of writing, Bitcoin is valued at $29,906 with weekly gains of 11%.
Overall, White’s insights highlight potential challenges and considerations for the future of Bitcoin’s security and its role in the global financial landscape.