Author: Ferdinando M. Ametrano 2014-10-28 21:23:27
Published on: 2014-10-28T21:23:27+00:00
In November 2008, Bitcoin was a young ecosystem. The halving occurred during a stable upward price trend, which is disputed by some. There is more complexity to the system than just the subsidy schedule, and many people have planned around the current behavior, which has not shown itself to be problematic. In fact, it has encouraged investment in mining infrastructure. However, there are concerns that increased competition could push mining revenues below operational costs, causing non-profitable mining resources to shut off. This could lead to cheaply available resources for malevolent agents looking to carry out a 51% attack. Additionally, this timing would be perfect for the burst of any existing cloud hashing Ponzi scheme. From an economic standpoint, allowing the halving jump could be asking for trouble.
Updated on: 2023-06-09T03:44:09.128843+00:00