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Bitcoin’s Security Threatened By Unsustainable Growth, Analyst Warns

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Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, could face a major security threat due to its unsustainable growth trajectory. According to a recent analysis by Justin Bons, founder of Cyber Capital, BTC must double in value every four years or sustain extremely high fees to maintain its current level of security.

Is Bitcoin’s Security Linked To Its Price?

In Bons’ analysis, he highlights that Bitcoin’s security model is based on its mining network, which requires a constant flow of new miners to maintain its security. However, suppose the price of Bitcoin continues to rise at its current pace. In that case, it will eventually reach a point where the cost of mining will become too high, leading to a decline in the number of miners and a subsequent decrease in security.

1/9) BTC has to double in value every four years for the next century or sustain extremely high fees

Just to maintain the current level of security

Such growth is impossible since it would exceed global GDP in 31 years based on current price

Therefore; BTC security is doomed!

— Justin Bons (@Justin_Bons) April 23, 2023

To put it simply, Bitcoin’s security is inextricably linked to its price, and if the price continues to rise at its current pace, it will eventually become unsustainable. Bons suggests that BTC may need to find a new solution to maintain its security or risk becoming a victim of its success.

Furthermore, Bons argues that Bitcoin’s security and technical foundation are “made out of the sand” and that the cryptocurrency’s growth model is based on “false hope.” He suggests that paying hundreds of dollars for a single transaction is unrealistic in a competitive market and that when fees spike, users leave, leading to a decline in the network’s overall security.

Bons also blames the unnecessary addition of the block size limit for exacerbating the problem. He ar

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Author: Ronaldo Marquez

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