Author: Keagan McClelland 2022-06-21 19:00:07
Published on: 2022-06-21T19:00:07+00:00
The discussion on the security of Bitcoin revolves around the fact that the Proof-of-Work (PoW) security benefits all users proportionate to the value of BTC they hold. The cost of this security should not be borne solely by transactors on a per-transaction basis, as it would not work due to inconsistent demand. While inflation may be simpler to implement for security purposes, a better solution would be to keep the supply fixed and have people's UTXO balances decay, at least at the level of UX. This method of demurrage would balance fees based on receipt, hold, and spend, which is appropriate given the value of money. However, none of these discussions should prevent improvements in Bitcoin's value and increasing its demand. The suggestion to increase block demand with advanced transaction support, such as covenant support and MWEB, could result in higher fees, allowing Bitcoin to sustain itself on fees alone forever.
Updated on: 2023-06-15T21:25:28.871027+00:00