Why Bitcoin is heading towards a huge mining problem

Business Insider UK spoke with University of Cambridge Research Fellow Garrick Hileman about cryptocurrency mining and the potential problems that it could bring in the future.

He explains that the amount of Bitcoin rewarded for mining is halved every four years which means that it will be less profitable.

“So as we look into the future the reward of new Bitcoins is reduced from the current 12.5 to about 6.25 new Bitcoins every ten minutes which will occur in around July 2023.”

“Eventually you get to the point where the nominal number of new Bitcoins you earn for mining Bitcoin becomes quite small. ultimately the number of new Bitcoins coming into existence through mining will be cut to zero.”

“We’ll hit the 21 million limit and the only direct financial incentive left to mine Bitcoin will be transaction fees and there’s an open question as to whether or not the transaction fees will provide a sufficient financial incentive to maintain the kind of computing power that Bitcoin enjoys today”

Watch to hear the full interview.

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Business Insider UK is the largest business news site for British readers and viewers in the UK. Our mission: to tell you all you need to know about the big world around you. The BI UK Video team focuses on business, technology, strategy, and culture with an emphasis on unique storytelling and data that appeals to the next generation of leaders.

Why Bitcoin is heading towards a huge mining problem

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