2019-2-7 23:25 |
Bitcoin (BTC) was created by Satoshi Nakamoto around ten years ago with the intention to avoid the traditional financial system and government’s control over people. At that moment, Nakamoto wrote that there were going to be just 21 million BTC. At that time, Bitcoin’s deflationary nature was something that individuals in the market really liked. However, there are some discussions regarding this issue.
It seems that there are some individuals and enthusiasts that are thinking about a change in Bitcoin’s supply for the future. There are some fears regarding the fixed number of BTC. It might be possible for the asset not to be used if the supply remains fixed.
The most important meeting related to Bitcoin and virtual currencies is called Satoshi’s Roundtable. However, this event is almost like a taboo. Attendees have issues finding the place and media is not allowed at the event.
Matt Luongo, the founder of Fold App, talked about the event and one of the topics that were discussed there. According to what he released on Twitter, he said that in the future we might have to raise the Bitcoin supply cap.
I was the guy that said we might have to one day raise the Bitcoin supply cap. Fight me. https://t.co/ysqHHdcggf
— Matt Luongo (@mhluongo) February 4, 2019
In this thread, Luongo says that it is not possible to know what will happen with Bitcoin and its transaction fees in the long-term. He explained that miners’ revenue will move from being centered in inflation to transaction fees.
That means that the network will have a very deep change in the way that it operates. The Bitcoin model will change in around 11 or 15 years, thus affecting the whole network.
It might be possible for transactions to be reduced and most of them being processed through the Lightning Network (LN) and/or other layers. As transaction rewards will be smaller, the network would have fewer miners and be less secure. This would leave the Bitcoin vulnerable to 51% attacks.
If Bitcoin does not find a way to remain competitive and economically sustainable it can just collapse. Nevertheless, he has some ideas to solve this issue and avoid this problem. For example, it might be possible to use Bitcoin’s second layers to “contribute back to chain security.”
Travis King explained that there are several positive points related to Bitcoin’s capped supply. Moreover, Dan Held, the director of business development at Interchange and a former product manager at Blockchain.com said that there was a decision to make Bitcoin an asset with a supply of 21 million BTC.
Of course, there were individuals supporting Luongo’s comments. Ari Paul of BlockTower said that Bitcoin can’t survive without critical thought. Thus, he welcomed the comments made by Luongo.
Currently, Bitcoin is being traded around $3,415 and it has a market capitalization of $59.86 billion. The most popular digital asset will be experiencing a halving in May 2020. After this supply reduction, the reward per block will fall from 12.5 BTC down to 6.25 BTC.
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