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> Volatility is steadily going down. If this continues, Bitcoin will surpass gold in stability Also steadily going down is the block subsidy. In 21 years it wi
by tromp 3y ago
> Volatility is steadily going down. If this continues, Bitcoin will surpass gold in stability
Also steadily going down is the block subsidy. In 21 years it will be 64x less than what it is now, and some decades later it will be negligible, leaving only fees to incentivize miners to secure Bitcoin.
Research suggests that Bitcoin might become somewhat lacking in stability then [1].
[1] https://www.cs.princeton.edu/~arvindn/publications/mining_CCS.pdf https://www.cs.princeton.edu/~arvindn/publications/mining_CC...
- ArtTimeInvestor 3y agoVisa alone is generating over $2B per month in revenue. If we see $2B in fees per month on the Bitcoin network, that would mean an "attacker" could do 100% of the mining by spending $2B per month on electricity. They first would have to buy enough mining hardware, build mining facilities and find enough power sources though. That would probably cost another couple of billions. Then they have the power to ignore legit transactions and freeze funds of whichever addresses they like. For as long as they are willing to pay $2B/month for that. How would they make back this gigantic investment? To me, it seems the financial incentive is just not there to "destabilize" Bitcoin. Even when we are in "fees only" territory.