Bitcoin at risk? The Alarm on security and property rights

Bitcoin

Bitcoin at risk？ The Alarm on security and property rights

James O‘Beirne, developer of Bitcoin Core, recently issued a serious warning regarding the future of the world’s leading cryptocurrency. During an appearance on the podcast *Supply Shock*, OBeirne expressed deep concerns about the erosion of the Bitcoin security budget, emphasizing how this phenomenon could compromise the fundamental property rights that the network has always guaranteed.

According to OBeirne, the problem is urgent and requires immediate attention. The progressive decline in revenue allocated to network security, in fact, could push those managing Bitcoin to make drastic decisions, modifying some of its founding principles.

The Security Budget: a Pillar in Danger

During the interview, O‘Beirne explained that Bitcoin’s security budget is primarily based on rewards for miners and on-chain transaction fees. However, as time goes by and the next halving events approach — events that halve the reward for mined blocks — the risk of insufficient funds to maintain network security becomes increasingly real.

OBeirne emphasized that the decrease in rewards, combined with low fees and stagnant prices, could create an extremely difficult situation for miners. In this context, pressures might emerge to introduce radical changes to the Bitcoin protocol, thus compromising its original nature.

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Controversial Changes: Tail Emissions and Changes to the Supply

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Among the possible solutions discussed, O‘Beirne mentioned the introduction of the so-called tail emissions — continuous issuance of new coins even after reaching the maximum limit of 21 million bitcoins — and the modification of the cryptocurrency’s issuance program.

According to the developer, both of these options would represent a direct threat to the property rights of Bitcoin users. The idea of an infinite supply or an arbitrary change in the emission rules, in fact, would undermine the trust that millions of people place in the programmed scarcity of Bitcoin, one of its distinctive traits.

OBeirne has warned that, if these changes were adopted, Bitcoin would risk losing its identity, transforming into something very different from what it was originally conceived to be.

A narrow time window

The time to address this issue is limited. OBeirne has estimated that there are only two halving before the reduction of rewards becomes a critical problem for the security of the network. This means that the debate on how to ensure the sustainability of Bitcoin must start immediately, without further delays.

OBeirne stated, emphasizing the urgency of the situation.

An alarm already raised by other experts

The concerns of OBeirne are not isolated. Already in 2023, Nikita Zhavoronkov, the lead developer of the block explorer Blockchair, had raised similar issues. Zhavoronkov had predicted that, to solve the security budget problem, one of the following solutions would have to be used:

• Scale Bitcoin on-chain, increasing the number of transactions and therefore the fees.
• Remove the limit of 21 million BTC, allowing a continuous issuance of new coins.
• Modify the consensus system, abandoning proof-of-work in favor of more sustainable alternatives.

All these hypotheses, however, would involve substantial changes to the fondamentali di Bitcoin, with unpredictable consequences on user trust and the value of the asset.

The future of Bitcoin: between fidelity to principles and security challenges

The discussion raised by James O‘Beirne opens a crucial debate for the future of Bitcoin. On one hand, keeping its fundamental principles intact — such as scarcity and immutability — is essential to preserve user trust. On the other hand, the sustainability of the network’s security requires concrete and timely solutions.

The risk is that, without a considered intervention, Bitcoin may find itself at a crossroads: sacrificing part of its identity to survive or risking becoming vulnerable to external threats.