The post Bitcoin Network Security Concerns Grow Amid ETF & Wrapped Bitcoin Trends appeared first on Coinpedia Fintech News
Is Bitcoin in trouble? The BTC market looks bullish. It has seen a rise of 4.2% in the last 30 days. Most experts believe that Bitcoin might reach a new all-time high in the near future. So, what kind of trouble are we talking about? In a series of X posts, crypto educator, and analyst Duo Nine draws the attention of the cryptocurrency community to a very sensitive issue that Bitcoin enthusiasts must address in the near future if they want the native chain of BTC to remain secure. What’s the issue? Curious to know! Read on!
The Security Shift in Bitcoin’s Network
The way Bitcoin is designed ensures that network fees from transactions will replace block rewards for miners over time. If Bitcoin’s native network stays active with regular transactions, this transition can be smooth. However, the question is: will they remain active?
How ETFs and Wrapped Bitcoin Are Affecting Bitcoin’s Network?
The recent trend of growing ETF issuance and Wrapped Bitcoin utilization is causing Duo Nine to question whether the native BTC network can stay active long-term. He argues that when BTC is locked for wrapped BTC tokens, it sits idle on the Bitcoin network, generating no transaction fees. He sees the same problem with the Bitcoin ETF purchases. He notes that the Bitcoins brought by BTC ETF issuers remain dormant in custodial wallets.
Bitcoin is in trouble.
If nothing changes soon, things won’t be pretty.
I’m not talking about the halving schedule or block rewards, it’s much more serious than that.
A thread 1/17
pic.twitter.com/i1o9TZAlqX
— Duo Nine
YCC (@DU09BTC) October 27, 2024
The Risk of Third Parties in Bitcoin Ownership
Duo Nine warns against the risk of third-party control over Bitcoin ownership. He highlights the importance of the original vision of Bitcoin: supporting direct asset ownership. He denounces the indirect ownership model, created by ETFs and Wrapped BTCs, emphasizing that it could undermine what Bitcoin was originally designed to support.
Protecting Bitcoin’s Security: The Role of Users
Duo Nine advises BTC owners to avoid third-party holdings like ETFs and Wrapped Bitcoins, and, instead, retain their Bitcoin on the native network.
In conclusion, using the Bitcoin chain for transactions directly helps support its shift to fee-based security, ensuring long-term stability.
