Bitcoin Predicted to Die as Mining Lacks Profitability
Another day, another dire Bitcoin prediction. Despite ten years of proving otherwise, people around the world seem convinced that Bitcoin will suddenly collapse any day now. Admittedly, the recent bear market may not seem very positive at first look but it’s hardly a catastrophe, yet.
Bitcoins most recent detractor is that of Joseph Carlson, the chief security scientist at Thycotic and a man who seems to have the credentials to back up his beliefs.
He surmises that Bitcoin will die as a result of mining becoming unprofitable. While this scenario is possible, the prediction isn’t entirely of his own creation – it was the third choice out a series of outcomes detailed by Bloomberg’s Noah Smith.
Three Possible Outcomes
In his analysis, Smith details three possible paths for Bitcoin to follow. The first and most positive path sees Bitcoin becoming the global currency envisioned by Twitter’s Jack Dorsey recently. In this scenario, Bitcoin will replace all cash worldwide and be used to pay for everything from chewing gum to taxes. While this scenario may seem far-fetched, it wasn’t that long ago that credit and debit cards were deemed unlikely to enjoy widespread adoption.
In Smith’s second scenario he believes Bitcoin could achieve gold like status, becoming exceptionally valuable and being used a means of safeguarding wealth in the event of a cataclysmic financial crash. In this scenario, he also imagines that certain failed economies like that of Venezuela may adopt Bitcoin to replace their local currency.
The third scenario, that grabbed Carlson’s attention as being the most likely possibility, is where Bitcoin loses all value and becomes essentially worthless. Carlson believes that the cost of mining will eventually outweigh any profits and miners will simply stop working.
While anything is possible, it seems unlikely that after ten years of support Bitcoin would be left to collapse. Whatever difficulties it may encounter related to mining or otherwise it seems far more likely that the network will be reconfigured so that it evolves and adapts to meet requirements.
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