Vitalik Buterin Predicts Bitcoin for 2042, Says One Big Problem Awaiting BTC

Vitalik Buterin Predicts Bitcoin for 2042, Says One Big Problem Awaiting BTC

Vitalik Buterin, the creator of Ethereum (ETH), has an idea of ​​what the state of Bitcoin (BTC) will look like twenty years from now.

in a new way an interview With economist Noah Smith, Buterin says that in the medium term, he believes crypto assets will become as volatile as gold or the stock market, moving away from the big bubble and crash stages of the past.

The crypto visionary also says that while crypto could satisfy some major narratives in the next two decades, mainstream adoption will be the biggest factor in determining the fate of digital assets.

“If, in the year 2040, cryptocurrency makes its way into a handful of areas: it replaces the gold store of the value component, then it becomes a kind of ‘Linux for Finance’, an alternative financial layer that is always available and ends up being the backend. For things that are really important but don’t completely capture the mainstream, the chance of them disappearing or taking over the entire world in 2042 will be much smaller, and the impact of individual events will be much less on that possibility.”

Looking to the future, Buterin says he has concerns about the future security of Bitcoin. With block rewards gradually dropping to zero over time, the Ethereum founder says that the mining ecosystem may lose incentive to keep the network secure.

“A consensus system that needlessly costs huge amounts of electricity is not only bad for the environment, but also requires hundreds of thousands of BTC or ETH to be issued each year. Eventually, of course, the issuance will drop to near zero, at which point the problem will stop, But then Bitcoin will start to deal with another problem: how to make sure it stays safe.”

Buterin says there may come a time when Bitcoin could be forced to switch to a mixed proof of stake consensus mechanism at least to overcome security flaws in its mining ecosystem.

“In the case of Bitcoin, I am concerned for two reasons. First, in the long run, Bitcoin security will come entirely from fees, and Bitcoin will not succeed in getting the level of fee revenue required to secure what could be a multi-billion dollar system. Bitcoin fees are around $300,000 per day and have not Growing a lot over the past 5 years…

Second, Proof of Work offers far less security for every dollar spent on transaction fees than Proof of Stake, and migrating Bitcoin away from Proof of Work seems politically unfeasible. What will the future look like when there is $5 trillion in bitcoin, but it only takes $5 billion to attack the chain? Of course, if Bitcoin is actually attacked, I would expect the political will to switch to at least a hybrid proof of stake quickly, but I expect it to be a painful transition.”

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Featured image: Shutterstock / Natalia Siiatovskaia / Art Furnace

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