According to Vitalik Buterin, Bitcoin will face the following two problems in the coming years that may destroy it

Vitalik Buterin, the founder of the second largest cryptocurrency described his idea in connection with the future of Bitcoin. He predicts that Bitcoin will face two major problems by 2040, among others, and in his words, he is worried about the future of Bitcoin and its security.

In a recent interview, Vitalik Buterin defined 2 problems that can seriously threaten Bitcoin.

Buterin, among other things, also commented on something else besides Bitcoin in the interview and expressed the opinion that he expects to see a volatility similar to gold or the stock market in connection with crypto assets and their volatility. Which could move this environment away from the views in connection with large bubbles and subsequent crashes.

The crypto pioneer and one of the most respected figures in the crypto space also says that while cryptocurrencies could cater to several key segments in the next two decades, the main factor in determining the fate of digital assets will be adoption in conjunction with the mainstream.

"If in 2040 cryptocurrency makes a decisive breakthrough in a few key areas: replacing the value-storing component of gold and becoming a sort of 'Linux of finance', an always-available alternative financial layer that ends up being the backend, the really important stuff but not completely taking over from the mainstream, then the chances of it either disappearing or completely taking over the world in 2042 will be much smaller, and individual events will have much less bearing on that possibility."

Buterin says he is concerned about the future security ofBitcoin. As block rewards gradually decrease over time, the Ethereum founder says the mining ecosystem could lose the incentive to keep the network safe.

"A consensus system that unnecessarily costs huge amounts of electricity is not only bad for the environment, but also requires the issuance of hundreds of thousands of BTC or ETH every year. Eventually, of course, the issue will be reduced to almost zero, at which point it will cease to be a problem but then Bitcoin has to start dealing with another problem: how to ensure it remains secure."

"In the case of Bitcoins, I am concerned for two reasons. First, in the long run, bitcoin security will come solely from fees, and bitcoins simply cannot get the level of fee revenue that is needed to secure a multi-trillion dollar system. Fees for bitcoins are approximately $300,000 per day and have not increased that much in the last five years...

Second ,Proof-of-work provides much less security per dollar spent on transaction fees than Proof-of-stake, and migrating bitcoins away from Proof-of-work seems politically unfeasible. What would the future look like when bitcoin is worth $5 trillion, but only $5 billion is needed to attack the chain? Of course, if bitcoin is indeed attacked, I expect the political will to move quickly to at least a hybrid Proof-of-stake, but I expect it to be a painful transition."

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