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Bitcoin Core developers may constitute a systemic risk - report

Monday 7 March 2016 00:14 CET | News

The Bitcoin Core team, the development team that oversees work on Bitcoins software, may be a systemic risk for the Bitcoin network, according to the CEO of Coinbase.

Brian Armstrong, CEO of Bitcoin exchange service Coinbase, opened with his take on the Bitcoin network scaling debate, which he framed as an unresolved dispute between Core developers and Bitcoin companies who want growth.

Miners, the entities that process transactions on the network, are caught in the middle of a debate that he painted as philosophical in nature.

Armstrong highlighted a scenario in which, following the upcoming halving of the Bitcoin network subsidy, instead of producing 25 new Bitcoins per block, only 12.5 Bitcoins will be created. Miner profitability will plunge, he argued, thereby driving some of them out of the network entirely.

According to some observers, such activity adversely affects Coinbases business model, as users are unable to deposit or withdraw funds in a timely fashion, which in turn impacts the overall customer experience.


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Keywords: Bitcoin, mining, cryptocurrency, digital currency, online payments, online security, online transactions, Bitcoin Core
Categories: DeFi & Crypto & Web3
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DeFi & Crypto & Web3






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