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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