follows the following logic<\/strong>: it\u2019s well-known that the Bitcoin system can only emit a certain finite number of coins to the miners. As time goes by the block rewards keep getting halved and according to Satoshi, miners will be alternatively compensated by charging transaction processing fees.<\/p>\nAs the supply reduces, the value of the coins is poised to rise which even though the miners will be earning fewer coins, those coins will be worth more.<\/strong> The same can be said about transaction fees. As Bitcoin gains more adoption, the network will be processing more transactions whose fees would be able to compliment and finally supplement the mining rewards as the rewards fall.<\/p>\nThe BIS report also suggests that Bitcoin\u2019s latest scaling solution, the Lightning Network is not a worthy solution<\/strong> but rather says that the PoW system should be done away with entirely and substituted with another form of consensus mechanism. According to the report, the new mechanism will \u201cprobably require some form of social coordination or institutionalization.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The Bank of International Settlements (BIS) is suggesting, through a recently released working paper, that the Bitcoin community should abandon its highly glorified (and deservedly so) Proof of Work consensus mechanism on the account of its resource intensiveness and environmental challenges.<\/p>\n","protected":false},"author":5,"featured_media":11982,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[100,70,74],"tags":[4602,4910],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/11980"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=11980"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/11980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/11982"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=11980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=11980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=11980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}