Some predict disaster, while others anticipate no issues at all.
𝐖𝐡𝐚𝐭'𝐬 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐝𝐞𝐚𝐥?
The worry is this: When block rewards get slashed in half, miners might leave the Bitcoin network to start mining a more profitable coin, leading to decreased security.
However, bitcoin has a built-in protection system against this very issue—difficulty adjustments.
Simply put, these adjustments ensure mining profitability inversely correlates with miner participation. Fewer miners in the game mean higher profits for those who stay, and as more join, the rewards diminish.
Thus, if miner numbers drop sharply, a surge in profitability encourages them to reboot their operations.
So, is the halving going to undermine Bitcoin's security? Considering past halvings never led to any disruptions, coupled with difficulty adjustment consistently being able to maintain balance, I’d say that Bitcoin is well-equipped to handle halvings without security issues.
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