Feb 12, 2019 11:45 UTC
Feb 12, 2019 at 11:45 UTC
Bitcoin Core Aims to Solve Limited Supply and Bitcoin Halvening Problems
During the recent Satoshi roundtable event, the cry for increasing the limit of Bitcoin was addressed by Jiang Zhuoer, the founder of prominent cryptocurrency mining pool BTC. The founder wrote on his weibo page that the next goal for the Bitcoin core members is to increase the upper limit of 21 million total supply and halt Bitcoin halvening.
The bitcoin core development team is a big fan of the original software introduced by Satoshi Nakamoto which was in use before the Bitcoin blockchain hard forked into bitcoin cash.
“ This is a long-held plan for Bitcoin Core camp to increase bitcoin supply, and now they just try to know the bitcoin community’s response to it by sparking the debate,”
The Satoshi Roundtable Conference and Major Topics of Discussion
The roundtable conference which commenced last week was not covered by the media, however, apart from Jiang, Matt Luongo, the founder of Fold was another participant and the one who put out the question of increasing the limited supply cap.
Jiang in his post on weibo says that he was aware of the Bitcoin core team’s plans of working upon increasing the supply of total Bitcoin. However, he was not certain if this massive plan would be put to trial or executed.
The Bitcoin core team has made some significant progress in the initial testing phase where they have conducted a ‘no deflationary halving on the Grin experiment,’ After Matt came out on Twitter claiming that he was the one who initiated the increase of supply chain topic on Twitter, the whole crypto space broke into a debate on the same topic.
Jiang acknowledged the revelation made by Matt and called him the mouthpiece of the Bitcoin core development team in the round table conference.
What Could Be the Possible Impact of Increasing the Bitcoin Supply?
Jiang believes that increasing the supply limit of Bitcoin could help it in establishing the pioneer cryptocurrency as a true censorship resistance form of asset, which was the main aim behind the formation of Bitcoin.
In order to be a true censorship-resistant currency, the block size of the currency should be small and if the supply limit is not increased, the Bitcoin halvening would continue, in order to counter the scalability woes.
In the currently limited supply scenario, the 1MB block size limit might affect the mining revenues to a great extent. With lower block rewards, people might opt against the mining process and the ever-lingering bearish market only adds to the cause. Jiang is worried that, if the block reward continues to lessen people will eventually opt against the mining. The lesser hash rate input due to the scarcity of miners can expose the Bitcoin network to 51% attack.
However, Jiang is looking at the other side of the spectrum as well and thinking from an investor perspective, stopping the Bitcoin halving and increasing the fixed supply could dilute the value of investors holding.
Jiang concluded that he does not care much about the Bitcoin core developers initiative on the main Bitcoin network as long as they are not increasing the supply limit of Bitcoin cash.