Popular crypto analyst warns Bitcoin will collapse in 7 years
As Bitcoin is struggling to regain traction, down nearly 4% in the last 30 days, an analyst has ignited a fierce debate saying Bitcoin may collapse within the next 7 to 11 years.
Justin Bons, founder of Cyber Capital, stated on X that Bitcoin's security model is ultimately unsustainable.
On Aug. 17, Bons said that Bitcoin's mining rewards will decrease from halvings, diminishing miners, and decreasing security budgets. Bons had earlier predicted the same, saying, "BTC's security model is broken; doomed to collapse within a decade!"
He warned that, without sufficient incentives, the network faces censorship or a 51% attack.
He suggested that ultimately, developers will have no option. Bons believes that developers would be forced to inflate the supply above 21 million coins, which would divide the chain and ultimately end Bitcoin.
Bons also explained that his prediction is supported by calculations and pointed out that after 11 years, the block reward will result in just 0.39 BTC or approximately $2.3 billion a year at current prices.
Bons argues that, unlike other networks, transaction fees have not risen high enough to replace block subsidies, and history shows that Bitcoin has not evolved with this trend.
The Bitcoin block reward is currently 3.125 bitcoins plus mining fees. This reward is halved every four years to control bitcoin supply and prevent inflation.
Critics immediately responded.
Joel Valenzuela, Business development, Dashpay, suggested that while the logic is sound on paper, there are enough actors that are incentivized to keep Bitcoin alive for well over a decade.
Others also made the case that Bitcoin "has adapted before" and saw fee spikes and scaling solutions as a path forward.
In the same context, Michael Saylor, Executive Chairman of Strategy, has often pinned Bitcoin's 21 million cap as the core principle for its exclusivity as an asset.
Many advocates argue that altering this principle would undermine the very basis of Bitcoin's value. Users also highlighted past forks like Bitcoin Cash, suggesting future splits are possible but not necessarily fatal.
This article has been published in TheStreet via Yahoo News.
