Bitcoin Security is a “Time Bomb”
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Bitcoin, the pioneering cryptocurrency, has long been praised for its decentralization, security, and immutability. However, a recent analysis by security expert Justin Drake has raised serious concerns about the sustainability of Bitcoin’s security model. He described it as a “time bomb.” Drake warned of a critical flaw in Bitcoin’s Proof-of-Work (PoW) mechanism. If left unaddressed, it could threaten the entire cryptocurrency ecosystem. Why is Bitcoin Security a “Time Bomb”? Drake’s argument centers around a sharp decline in Bitcoin transaction fees, which have now hit a 13-year low, below 10 BTC per day. Bitcoin Transaction Fees. Source: Blockchain.com He explained that transaction fees account for only about 1% of miner revenue. The remaining 99% comes from block rewards—the new Bitcoins generated to incentivize miners to secure the network. However, these block rewards are cut in half every four years in an event known as the Bitcoin halving. In April 2024, the block reward dropped to 3.125 BTC. This trend will continue until Bitcoin’s total supply reaches the hard cap of 21 million coins. Historically, the Bitcoin community believed that transaction fees would rise as block rewards decreased, ensuring miners stayed motivated to maintain network security. But data shows the opposite. Over the past decade, transaction fees have declined even faster than block rewards. Bitcoin Fee in Reward Historical Chart. Source: Bitinfocharts For example, in March 2016, transaction fees represented 1% of the block reward for 25 BTC. By April 2025, even with the block reward reduced to 3.125 BTC, fees still accounted for only 1%. This persistent decline in fee revenue is shrinking Bitcoin’s security budget, which is the funding that incentivizes miners. As a result, the network is becoming increasingly vulnerable to attacks. “Imagine fees were the only source of miner revenue today:→ revenue drops 100x→ hashing infra decreases 100x→…
Filed under: News - @ May 30, 2025 11:26 am