Understanding Bitcoin's Security Dynamics

This chapter explores the complexities of Bitcoin's issuance curve and its impact on network security, emphasizing the significance of transaction finality and misconceptions about the security budget. It discusses the interplay between user behaviors, market demand, and transaction fees, highlighting how these factors influence block space demand and mining strategies. The chapter further contrasts proof of work and proof of stake systems, providing a comprehensive look at the nuances affecting Bitcoin's reliability as a monetary system.