The founder and CIO of Cybercapital, Justin Bons, has warned about the vulnerability of smaller parties in the event of a bitcoin bank run. He explains that if there were to be a price drop event, miners would shut down their operations due to unprofitability, which would impact the network's operativity. Bons highlights that bitcoin's technical limitations make it susceptible to a bank run, and due to its low transaction count, on-chain users would not be able to exit their market positions in a timely manner. This would particularly affect smaller parties, while larger parties with higher fees would exit first. Bons argues that this kind of scenario would lead to a decrease in the bitcoin price and potentially cause miners to stop their operations, resulting in a "death spiral" for BTC. He also highlights that Bitcoin's security budget is unsustainable and may run out within the next decade. Others have echoed these concerns, emphasizing the impact on Bitcoin's security budget and operativity.



Other News from Today