Vijay Boyapati, author of "The Bullish Case for Bitcoin," and Justin Drake, a researcher at the Ethereum Foundation, delve into Bitcoin's future security. They debate whether transaction fees can sustain Bitcoin once block rewards decline. Justin argues this reliance may arise in just 20-30 years, while Vijay is skeptical. The duo explores implications of a 51% attack, Bitcoin's economic model, and compares it to the Gold Standard. Their contrasting views on Bitcoin's hard cap and Ethereum's strengths lead to a riveting discussion on the evolution of cryptocurrency.
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insights INSIGHT
Bitcoin Security Spectrum
Bitcoin's security is a spectrum if the attacker has less than 50% of hash power.
It becomes binary at 51% because the attacker gains control.
insights INSIGHT
51% Attack Incentives
A 51% attack doesn't guarantee arbitrary actions due to network incentives.
Empirical studies show that pools controlling >50% of hash rate haven't launched 51% attacks.
insights INSIGHT
Security Budget and Factor
Bitcoin’s security budget, the total rewards to miners, comprises issuance and fees.
A security factor (budget/market cap) measures attacker leverage.
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Once the block reward diminishes greatly, can Bitcoin be secured only by transaction fees? On Unchained, Bitcoin writer Vijay Boyapati and Ethereum Foundation’s Justin Drake debate the merits of Bitcoin’s security model, which Drake says will largely rely on transaction fees as soon as within 20-30 years, not in 100+ years. Highlights:
Justin’s and Vijay’s professional backgrounds
why Justin thinks Bitcoin cannot survive solely on fees
how Bitcoin is currently secured
what makes Bitcoin’s security subjective rather than binary
how much it would cost in dollars to 51% attack Bitcoin
what the Bitcoin network could do in response to a 51% attack
how to calculate Bitcoin’s security budget
why Bitcoin's price can’t go exponential forever
whether a “nuclear option” for Bitcoin miners could protect against a 51% attack
why nation-states could be either pro or anti-Bitcoin
why a Bitcoin Standard could be similar to the Gold Standard
how Bitcoin will change going forward, and why Vijay thinks transaction fees will increase
why Justin does not think transaction fees will increase enough to secure Bitcoin’s base layer
how Justin would fix Bitcoin’s security model -- and why he thinks the 21 million hard cap is a meme
why Vijay does not think Bitcoin’s security model will ever change -- especially the 21 million hard cap
what Justin thinks Ethereum is doing better than Bitcoin
why Vijay thinks Ethereum will fail
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