Bitcoin [BTC], the largest cryptocurrency by market cap, continues to be one of the most controversial topics in the crypto-space. It is now in the headlines following the statements made by Daniel Larimer, the Co-founder of blockchain Steem and the CTO of Block.one.
The Co-founder spoke about Bitcoin having, a term that refers to the halving of Bitcoin mining reward after every 210,000 blocks are mined, on Twitter. The CTO stated that the cost of block production would be more than its reward after the halving.
Daniel Larimer said,
#bitcoin halves eventually the cost of block production will exceed rewards. Demand for transactions will be the sole driver for block production and bitcoin will become more decentralized… if only the difficulty could be bought down so hardware advantages are neutralized.”
The reward for mining each block was previously at 50 BTC. However, in line with the Nakamoto consensus, this reward would decrease by half roughly every four years, i.e., after 210,000 blocks are produced. The first halving event occurred in 2012, with the reward decreasing to 25 BTC per block produced.
The current reward is 12.5 BTC per block produced, with the cycle starting in 2016. The next halving is set to take place in 2020, following which the block reward would be cut to 6.25 BTC. This cycle will continue until all 21 million Bitcoins are mined, which is speculated to take place around 2140.
HotelCryptofornia, a Twitter user, said,
“From early as 2013, Bitcoin mining was already out of the reach of the common citizen with a PC left running overnight to further decentralize the network. Power over the network was concentrated as a result. It has gotten worse ever since and is almost unrecognizable now.”
Slipstream, another Twitter user, commented,
“What i foresee is a possible reduction in block time so more transactions go through as the reward tends to zero. Ultimately the network will have to run purely on tx fees and block times wont be as important as they are now.”
Notably, this was not the first time Larimer has taken potshots at Bitcoin. Previously, he had claimed that he could take down Bitcoin [BTC] and Ethereum [ETH] for “quite some while” with just three pool operators. He was criticized for the same on social media.