Bitcoin network adapts as mining rewards decrease, showcasing market resilience and sustainability

Quick Take

As diminishing mining rewards in the Bitcoin network cause anxieties over the security budget, analyzing the market’s behavior provides a different perspective.

A year ago, Poolin, a significant player with 20% of the hash rate in 2020, saw its share reduce to zero, raising concerns over Bitcoin’s security. However, no discussions about the security budget ensued. Instead, other mining pools filled the void left by Poolin in a classic free market response, demonstrating the market’s ability to self-correct and maintain balance.