Justin Bons, an experienced investor and hedge fund manager, Bitcoin (BTC) He said he was confident he had limited time as a secure means of payment.
According to Bons, Bitcoin network participants in the coming years will lose their economic motivation to keep the network secure.
“Bitcoin Needs To Double Its Value Every Four Years To Keep Working”
Bons claimed on Twitter today that for Bitcoin (BTC) to remain secure, it must double in value every four years over the next century or contend with extremely high transaction fees.
At the same time, this growth seems impossible to the analyst as the market cap of Bitcoin (BTC) would have to exceed the net GDP of all countries of the world to achieve this target. But even if this extreme bullish scenario does happen, in 80 years, Bitcoin’s (BTC) “safety budget” could be a thing of the past.
1/4) BTC has to double in value every four years for the next century or sustain extremely high fees
Just to maintain the current level of security
Such growth is impossible since it would exceed global GDP in 33 years based on current price
Therefore; BTC security is doomed!
— Justin Bons (@Justin_Bons) January 21, 2023
Also, it seems highly unlikely that a significant number of users will still use Bitcoin (BTC) to pay an average transaction fee of $100, according to the analyst.
Ethereum (ETH) gas fees rose above $100 in 2020-2021 for Uniswap (UNI) transactions and OpenSea listings prior to the activation of EIP 1559. The Ethereum (ETH) network was almost unusable during these spikes.
Justin Bons thinks that the Bitcoin (BTC) block size limit is responsible for the impending collapse that seems almost inevitable to him:
“Paying hundreds of dollars for a single transaction is unrealistic in a competitive market. When fees go up, users leave the market due to the unnecessary addition of the block size limit.”
In response, Bons praised the Ethereum Merge mainnet activation for its positive tokenomic implications for Ethereum (ETH) users and the community.
Bons added that he previously fought for the “original vision” of Bitcoin (BTC), but will now warn BTC users of the “imminent collapse.” According to Bons’ prediction, the security model of Bitcoin (BTC) will fail in 5-9 years.
*Not investment advice.
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