Author: Alfie John 2023-01-01 12:42:50
Published on: 2023-01-01T12:42:50+00:00
A discussion on bitcoin-dev mailing list on 31st December 2022 led to concerns regarding the possibility of a destructive halving in the Bitcoin network. Peter Todd expressed his apprehension about how profit margins tend towards marginal costs instead of total costs in a competitive market, which could lead to a significant amount of hashing power just barely able to afford to hash prior to the halving. This could result in all that hashing power immediately having to shut down and fees increasing dramatically, leading to chaos. Another participant, Alfie John, questioned whether a halving could be considered a sudden shock to the system since everyone knows of the possible outcomes and hence, it should be priced in. He also suggested that the fee increases resulting from the shutdown of hashing power could cause it to come back.
Updated on: 2023-06-16T03:37:30.743769+00:00