One of the major issues recently debated on by the Bitcoin [BTC] community is the aspect of security that is attached to the fear of declining block rewards.
Rusty Russell, Contributor at Blockstream, recently stated that there was genuine concern about Bitcoin’s security as the subsidy was reduced from block creation.
However, Giacomo Zucco, a Bitcoin enthusiast, has argued that such security concerns were minimal. Zucco said that it was important to note that block subsidy was not going to reduce in terms of purchasing power, as the halving process would only affect the nominal sats, but not in the actual “purchasing power.” The halving might even create a situation where the block subsidy increases in terms of purchasing power.
He stated that the adoption of Bitcoin and the success that follows would eventually reach a “flatline plateau” which could affect the block subsidy and increase transaction fee. However, that would require the halving to reach “final cut-off” point, and that was far in the future.
“Such very long time-frames, while can’t fundamentally change the terms of the problem, can actually challenge our quantitative assumptions about it. A lot.”
He added that the relative time period for Bitcoin to actually fall in terms of growth was very high, suggesting that it made “sense” to direct efforts in order to reduce “validation costs & help increase the rate of validating nodes in the network.”
Zucco concluded by saying,
“The point here is that in basically any scenario in which attacking Bitcoin makes sense for state-level entities, Bitcoin is so successful that we can assume demand for block space going up as much or even more than subsidy goes down. That is until very far demand plateaus.”
The post Bitcoin’s [BTC] security concerns over reduced block subsidy irrelevant, claims Giacomo Zucco appeared first on AMBCrypto.