Currently, the price of bitcoin (BTC) is on an upward trajectory. For investors, this is excellent news. After all, this uptrend represents an opportunity for them to make huge gains. But, Justin Bons, founder of Cyber Capital, believes that the flagship crypto could become a victim of its own success. Here’s how.
The price of bitcoin (BTC) has an impact on maintaining its security
The founder of Cyber Capital suggested last year that bitcoin is the worst crypto. Today, he steps up to cite two essential options for maintaining Bitcoin’s level of security. He first talked about the doubling of the value of BTC every four years. Second, he talked about an extreme increase in transaction fees. Justin Bons explained that the flagship crypto’s mining system governs how its security model works. He specified that it is necessary a constant flow of new miners to keep the blockchain secure.
In this context, he may have a serious problem if the growth of bitcoin continues at the current rate. Indeed, there will come a time when the cost of mining will become much too high. The number of miners is likely to decrease, leading to a drop in Bitcoin’s security level. This suggests that maintaining the security of the Bitcoin network is inextricably dependent on the price of BTC.
In this case, Bitcoin risks becoming unsustainable if its price rise continues to keep up with the current pace. In fact, this increase could cause the blockchain security budget to be depleted. Bitcoin would then become vulnerable to censorship. If the flagship crypto wants to avoid this situation, it will have to find a new method for maintaining its security.
Bons explained that the best solution to the Bitcoin problem is to increase BTC supply inflation beyond 21 million. At the same time, he suggested that Bitcoin’s security and technical underpinnings are shaky. Moreover, the growth model of the flagship crypto would be based on “false hopes“. Indeed, according to the founder of Cyber Capital, it is unrealistic to pay hundreds of dollars for a single transaction. Especially since the market is very competitive and an increase in fees scares away users. Bons pointed out that the situation is getting worse with the block size limit which incidentally is at the center of the Ordinals controversy.
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