Avalanche Founder Predicts Bitcoin Security Crisis as Mining Rewards Continue Falling

• Avalanche founder warns Bitcoin mining rewards could trigger future network security crisis.
• CZ comments and Bitcoin economics debate spark renewed cryptocurrency market concerns.
• Bitcoin halving pressure raises fears over long-term miner profitability and security.

Concerns around Bitcoin’s long-term sustainability intensified after Avalanche founder Emin Gün Sirer warned that the cryptocurrency could face a serious economic problem in the future. His comments shifted attention away from common market fears and focused instead on Bitcoin’s shrinking mining rewards. According to Sirer, Bitcoin’s current economic structure may struggle to support miners over time because rewards continue declining after every halving cycle. He argued that the issue represents a larger threat to Bitcoin than quantum computing or competing cryptocurrencies.

A crypto-focused account connected to prediction platform Kalshi shared a sensationalized headline suggesting Zhao believed Bitcoin would eventually disappear. However, the original remarks presented a more balanced position. According to Zhao during an interview with Ran Neuner on Crypto Banter, Bitcoin could theoretically face replacement from superior technology in the distant future. Despite that possibility, Zhao emphasized that Bitcoin currently operates as global money and remains deeply established within the financial system.

Additionally, Zhao explained that institutional participation has weakened Bitcoin’s traditional four-year market cycle. Large capital inflows from institutions have gradually changed how investors interpret halving events and long-term price behavior.

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Bitcoin Mining Economics Return to Center Stage

Bitcoin miners secure the network through Proof-of-Work operations that consume significant electricity and computing power. In return, miners receive newly issued Bitcoin and transaction fees attached to network activity. However, each halving event reduces block rewards by 50 percent. Consequently, miners increasingly depend on transaction fees to maintain profitability. Critics argue that declining rewards may eventually fail to support mining operations unless Bitcoin transaction fees rise substantially.

Sirer believes this trend could weaken Bitcoin’s long-term security model because miners may leave the network if operating costs exceed rewards. Reduced participation could eventually affect decentralization and network protection. Moreover, Sirer proposed a possible solution connected to technology developed within the Avalanche ecosystem. He suggested Bitcoin could use a pre-consensus layer to reduce the burden tied to transaction validation.

Still, such proposals remain controversial within the Bitcoin community because many supporters strongly oppose structural changes to the network. Bitcoin developers and long-term holders have historically resisted modifications that alter the cryptocurrency’s original design principles. Even so, Sirer’s warning has revived debate around Bitcoin’s future security model at a time when institutional demand continues growing across the broader crypto market.

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