Mo Profile picture
Mo
Cryptocurrency fanboy, investor, analyst, troll. In it for the money *and* the tech. eCash, #Bitcoin, #Ethereum, and beyond.
4 Dec 19
Some more data indicating that #Bitcoin’s attack-resistance will likely continue to deteriorate as its block subsidy declines. #halvening

Thread. 👇
Bitcoiners often state that hash power is increasing, and therefore the security of the network must be increasing, too.

However, hash power is an exceptionally poor metric for security, as described—for instance—by @OhGodAGirl:

medium.com/@OhGodAGirl/th…
If transaction fees (F) were to replace issuance (I) (i.e., block subsidy) over time, the ratio F/I needs to grow indefinitely.

Let’s look at Bitcoin's F/I a bit more closely. (thanks to @coinmetrics for the raw data)
Read 13 tweets
7 Nov 19
#Bitcoin enthusiasts frequently state that "there will only ever be 21 million $BTC ". Therefore BTC is “digital gold”.

In reality, the 21M BTC supply cap is a pipe dream.

Why am I so sure about this?

Thread 👇
1. Theoretical considerations:

Multiple studies indicate that #PoW becomes unstable when the block subsidy is low:

bis.org/publ/work765.p…

medium.com/logos-network/…

medium.com/@hasufly/resea…
In a nutshell:

The great thing about inflation is that it incentivizes miners to secure the network even if there are few transactions. BTC users can rely on this baseline security at all times.
Read 11 tweets