Coin Citadel (CCTL)

[I-Glow]

Fears Over Bitcoin’s Future  

Vitalik Buterin is concerned about Bitcoin’s future. 

In a September 2 interview with economics writer Noah Smith, the Ethereum creator said that he is “worried [about Bitcoin] for two reasons.” He explained that he thinks Bitcoin could face problems in the long-term future owing to its fee model. Bitcoin currently distributes coins to miners as payment for securing the network, but as the protocol has a hard supply cap of 21 million, eventually the network will rely on transaction fees alone for security. Buterin told Smith that this is a problem because Bitcoin is “not succeeding at getting the level of fee revenue required to secure what could be a multi-trillion-dollar system.” The amount of fees Bitcoin generates to other protocols has long been a hot topic of discussion in the crypto community. According to Crypto Fees data, Bitcoin averaged about $225,000 in fees over the past week, trailing DeFi mainstays like Aave and Uniswap. The biggest fee generator is the protocol Buterin created, which took in around $2.7 million over the same timeframe. 

Buterin said that he also has fears for Bitcoin because “Proof-of-Work provides much less security per dollar spent on transaction fees than Proof-of-Stake,” arguing that it would be problematic to have a $5 trillion network that costs only $5 billion to attack. Buterin also pointed out that Bitcoin switching away from Proof-of-Work would be “politically infeasible.” 

IG