Renowned Economist Highlights Bitcoin’s Security Challenges

Lawrence White, a prominent economist from George Mason University, recently discussed potential security concerns related to Bitcoin (BTC) during an interview published on October 22.

He expressed reservations about the cryptocurrency’s long-term security, particularly focusing on evolving miner rewards. Despite quantum computing concerns, Professor White wasn’t worried about Bitcoin‘s hackability, emphasizing its resilience.

He highlighted a distant issue – almost a century from now – when Bitcoin will no longer be mined, and miners will solely rely on transaction fees for income. Presently, miners are incentivized primarily by newly created Bitcoin, with transaction fees as a secondary income source. This dynamic changes as Bitcoin creation slows.

The block reward currently combines newly minted Bitcoin with transaction fees, but as mining concludes, the reward will rely solely on transaction fees. While Professor White’s concerns seem speculative, the Bitcoin community has a history of addressing security issues.

Shifting to Bitcoin’s role as a currency, Professor White believed its chances of widespread adoption were minimal. He thought other cryptocurrencies with stable purchasing power might play a more significant role. Additionally, stablecoins have made substantial strides in the crypto landscape.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.